There is good news to report about keeping film and television production jobs in Los Angeles and California. Tax incentives approved by the state Legislature and signed by Gov. Arnold Schwarzenegger last year are working. According to a state report, 60 productions that threatened to leave California are staying local, a strong statement about the value of competitive incentives.
Runaway film production has long threatened this signature industry of Los Angeles and California. Over the years, other states and countries have developed extensive tax and financial incentives aimed at luring entertainment jobs away from California. And those efforts were paying off for states like New Mexico and Louisiana, while California cities watched the jobs disappear. Every year, the Chamber and the California Film Commission suggested competitive incentives to even the playing field, but lawmakers in Sacramento argued over whether to offer any retention incentives at all. Fortunately, the long-sought film retention tax credits were enacted last February, following a strong push by local lawmakers led by former Assemblymember and now L.A. City Councilmember Paul Krekorian.
The year-end numbers tell a good story. The 60 productions that qualified for the incentives will generate more than $710 million in spending this fiscal year, with $310 million in direct wages to workers on those productions. This includes wardrobe specialists, special effects artists, script supervisors, production assistants, caterers, camera operators and a whole host of related jobs that make up the backbone of the entertainment industry. These productions have added 673 filming days across the state which means that many other local businesses like restaurants, hotels, dry cleaners and retailers will also benefit.
This success reinforces the fact that attracting and retaining jobs in California — and Los Angeles — depends on our willingness to roll out the red carpet and compete against other regions that are hungry to lower their own unemployment rates by luring job creators away from California. In this competitive economic environment for companies and cities, attention, incentives and bureaucratic streamlining are wise investments in our economic future … and a necessity to put the citizens of Los Angeles and California back to work.