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.
Utah Leaders and Locals Rally To Keep Sundance Film Festival In The State
With the 2025 Sundance Film Festival underway, Utah leaders, locals and longtime attendees are making a final push — one that could include paying millions of dollars — to keep the world-renowned film festival as its directors consider uprooting.
Thousands of festivalgoers affixed bright yellow stickers to their winter coats that read "Keep Sundance in Utah" in a last-ditch effort to convince festival leadership and state officials to keep it in Park City, its home of 41 years.
Gov. Spencer Cox said previously that Utah would not throw as much money at the festival as other states hoping to lure it away. Now his office is urging the Legislature to carve out $3 million for Sundance in the state budget, weeks before the independent film festival is expected to pick a home for the next decade.
It could retain a small presence in picturesque Park City and center itself in nearby Salt Lake City, or move to another finalist — Cincinnati, Ohio, or Boulder, Colorado — beginning in 2027.
"Sundance is Utah, and Utah is Sundance. You can't really separate those two," Cox said. "This is your home, and we desperately hope it will be your home forever."
Last year's festival generated about $132 million for the state of Utah, according to Sundance's 2024 economic impact report.
Festival Director Eugene Hernandez told reporters last week that they had not made a final decision. An announcement is expected this year by early spring.
Colorado is trying to further sweeten its offer. The state is considering legislation giving up to $34 million in tax incentives to film festivals like Sundance through 2036 — on top of the $1.5 million in funds already approved to lure the Utah festival to its neighboring... Read More