As earlier reported (SHOOT, 10/28, p. 1), Mayor Antonio Villaraigosa said his new administration plans to take proactive measures to help Los Angeles keep and attract more filming. During the first of what will be weekly policy briefings/press conferences, the mayor called for the elimination of filming fees on all city-owned properties. Approval from the Los Angeles City Council is required to bring such a fee waiver to pass.
While Villaraigosa said the cost of waiving such fees is negligible to the city, the move would send a positive message to producers that Los Angeles values the filming biz and the jobs it generates. He described this as a first step to encourage lensing, which is a critical dynamic in the success of the city’s economy. According to figures cited by the Mayor’s Office, film, TV and commercial production contribute more than $25 billion annually to the L.A. area.
Villaraigosa noted that such states as New York, Illinois and New Mexico have enacted pro-filming initiatives and are actively courting production, trying to woo it from Los Angeles. This year alone, 14 states passed new tax incentives or improved on their existing tax benefits in order to draw more production.
“We cannot stand idly by, while other states enact incentives to lure jobs away from California,” said Mayor Villaraigosa. “I will be rolling out some policies that will not only keep filming in Los Angeles, but allow it to flourish.”
Though those policies have not yet been publicly defined, word is that tax credits and other film-friendly incentives are being considered. Villaraigosa also expressed support for State Assembly Bill 777, which fell short of needed votes in the Senate during the California legislature’s session which adjourned on Sept. 9. However, there’s talk of reviving the anti-runaway initiative–which would apply to features, TV and commercials–as part of Gov. Arnold Schwarzenegger’s proposed 2006-’07 state budget, which is scheduled to be first presented in January (SHOOT, 9/23, p. 1).
Per the proposal as it appeared in the text of AB 777, a refundable tax credit of 12 percent would apply to qualified wages, as well as to certain production and post expenditures incurred in the making of commercials in California. The maximum annual amount any company could receive in refundable tax credits for spots is $500,000. The tax credits, if instituted, would apply to new commercialmaking business for California, meaning that the qualifying expenditures for a production house would be those that exceed the amount that the company spent in California during the previous year. The tax incentive program for commercials is tied to annual spending by a company instead of being paid out on a per-project basis.
Steve Caplan, executive VP of the Association of Independent Commercial Producers (AICP), was encouraged by Mayor Villaraigosa’s comments. “He certainly understands the significance of the industry to L.A.’s economy,” said Caplan of Villaraigosa. “We look forward to working with him. It says a lot that his first public policy press conference addressed filming and reflected his willingness to take a proactive stance on this issue.