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.
Gene Hackman Died Of Heart Disease; Hantavirus Claimed His Wife’s Life About One Week Prior
Actor Gene Hackman died of heart disease a full week after his wife died from hantavirus in their New Mexico hillside home, likely unaware that she was dead because he was in the advanced stages of Alzheimer's disease, authorities revealed Friday. Both deaths were ruled to be from natural causes, chief medical examiner Dr. Heather Jarrell said alongside state fire and health officials at a news conference. "Mr. Hackman showed evidence of advanced Alzheimer's disease," Jarrell said. "He was in a very poor state of health. He had significant heart disease, and I think ultimately that's what resulted in his death." Authorities didn't suspect foul play after the bodies of Hackman, 95, and Betsy Arakawa, 65, were discovered Feb 26. Immediate tests for carbon monoxide poisoning were negative. Investigators found that the last known communication and activity from Arakawa was Feb. 11 when she visited a pharmacy, pet store and grocery before returning to their gated neighborhood that afternoon, Santa Fe County Sheriff Adan Mendoza said Friday. Hackman's pacemaker last showed signs of activity a week later and that he had an abnormal heart rhythm Feb. 18, the day he likely died, Jarrell said. Although there was no reliable way to determine the date and time when both died, all signs point to their deaths coming a week apart, Jarrell said. "It's quite possible he was not aware she was deceased," Jarrell said. Dr. Michael Baden, a former New York City medical examiner, said he believes Hackman was severely impaired due to Alzheimer's disease and unable to deal with his wife's death in the last week of his life. "You are talking about very severe Alzheimer's disease that normal people would be in a nursing home or have a nurse, but she was taking care... Read More