Friday, 17 July 2009 12:35

News

After years of watching production lured away by government incentives, California has gotten into the game by approving a five-year $500 million tax credit program. On February 20, 2009, Governor Arnold Schwarzenegger signed legislation creating tax credits for film and television productions. The program is the first significant system of incentives to be put in place in California.

Attracting new shows is the primary aim of the incentives, which offer a 25% tax credit for TV series that relocate to California. Low-budget independent films with budgets of $1 million to $10 million will also be eligible.

Producers of new films and TV shows can claim a 20% credit that they can use to offset their income and sales tax liabilities. However, the deduction can be applied only to so-called below-the-line costs such as crew members' wages and not to the salaries of actors, writers or directors. The credit would exclude movies that cost more than $75 million.

Read the original Variety article here.

Read more about the specific details of the tax credit here.