A recent report from the Los Angeles County Economic Development Corp. (LAEDC) concludes that California’s Film and Television Tax Credit is paying off handsomely for the Golden State.
The LAEDC study estimated that the first 77 productions approved for the initial tax credit allocation of $198.8 million represent some $970 million in total qualifying expenditures which in turn will generate more than $3.8 billion in economic output in California and support 20,040 jobs with labor income of nearly $1.4 billion. Total resulting state and local tax revenues are estimated to reach some $201 million.
The LAEDC found that for every $1 million in qualifying expenditures, the nine productions on which the research was centered will generate $3.9 million in economic output and support 21 jobs with labor income of $1.4 million. Each $1 million of qualifying expenditures will result in some $207,000 in state and local taxes. Furthermore, these returns do not take into account how the appearance of California locations in films and television positively impacts tourism, a major economic engine in the state.
The report comes at a fortuitous time in that a five-year extension to the program is under consideration and reportedly on the road to final approval. Currently, the tax credit is set to expire in 2014.
However, the LAEDC report has been taken to task by Los Angeles Times columnist Michael Hiltzik for what it doesn’t contain–namely a disclosure that it was commissioned by the Motion Picture Association of America (MPAA), a proponent of subsidies for its members’ productions.
Still, there’s a strong case to be made for incentives in that runaway production has taken an undeniably major toll on the state’s economy. And it’s safe to say that the tax credit program has made California more competitive against other states and countries, retaining business and jobs that otherwise would have departed.
It’s another omission–from both the tax credit and the LAEDC report–with which I take issue. Neither includes commercials.
The tax credit applies to only select theatrical feature films (budgeted at $75 million or less) and certain TV programs. In questioning whether to expand the reach of the incentives, the LAEDC report looked to bigger budgeted features and network TV series, finding that both would generate a return on investment exceeding the state subsidies.
But the study contains nary a mention of commercials and what they mean to California’s economy. The conspiracy theorist might think that the alleged MPAA influence translated into spots not even being considered in the scope of the study. Or perhaps it’s just the age-old allure of features and television that has once again overshadowed the significance of the advertising industry. Yet make no mistake that in the world of filming activity, commercialmaking is a mainstay, stalwart contributor to the country’s economy.
Whatever the reason for commercials getting short shrift–or in this case, no shrift–the bottom line is that this latest lack of inclusion is short-sighted, particularly during a time of economic uncertainty.
Angelina Jolie and Brad Pitt Reach Divorce Settlement After 8 Years
Angelina Jolie and Brad Pitt have reached a divorce settlement, ending one of the longest and most contentious divorces in Hollywood history but not every legal issue between the two.
Jolie and Pitt signed off on a default declaration filed in Los Angeles Superior Court on Monday, saying they have entered into a written agreement on their marital and property rights. The settlement was first reported by People magazine.
"More than eight years ago, Angelina filed for divorce from Mr. Pitt," Jolie's attorney, James Simon, said in a statement. "She and the children left all of the properties they had shared with Mr. Pitt, and since that time she has focused on finding peace and healing for their family. This is just one part of a long ongoing process that started eight years ago. Frankly, Angelina is exhausted, but she is relieved this one part is over."
The filing says they give up the right to any future spousal financial support, but gives no other details. A judge will need to sign off on the agreement. An email late Monday night to Pitt's attorney seeking comment was not immediately answered.
Jolie, 49, and Pitt, 61, were among Hollywood's most prominent pairings for 12 years, two of them as a married couple. The Oscar winners have six children together.
Jolie filed for divorce in 2016, after a private jet flight from Europe during which she said Pitt physically abused her and their children. The FBI and child services officials investigated Pitt's actions on the flight. Two months later, the FBI released a statement saying it would not investigate further, and the U.S. attorney did not bring charges.
A heavily redacted FBI report obtained by The Associated Press in 2022 said that an agent provided a probable cause... Read More