During the first of what will be weekly policy briefings/press conferences marking his new administration, Mayor Antonio Villaraigosa (D-Los Angeles) said he would like to waive certain city-imposed filming fees. Initially his plan was to do away with such fees for lensing in downtown City Hall and regional city halls in San Pedro, South Los Angeles, Van Nuys and West Los Angeles. But during the press session, he expanded that initiative to encompass all city-owned properties.
Approval from the Los Angeles City Council is required to bring the fee waiver to pass. California has a longstanding policy in this regard; state-owned properties are available for lensing sans fees through the California Film Commission.
There was no timetable issued for enactment of Mayor Villaraigosa’s proposal. He said the cost of waiving fees would be negligible to the city but, if adopted, would send a positive message to producers that Los Angeles values the filming biz and the jobs it generates.
Villaraigosa has also expressed support for tax credits to encourage production in the Southland. That endorsement extends to the state measure, 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.”
According to statistics cited by the Mayor’s Office, film, TV and commercial production contribute more than $25 billion a year to the Los Angeles area economy.
