This column has been a strong proponent of commercials and branded content gaining eligibility for tax credits, rebates and other filming incentive programs. Thankfully a growing number of states has seen the prudence of such inclusion yet ironically California–long regarded as the film/TV production mecca–is not among them when it comes to its Film & Television Tax Credit Program which was part of last year’s state budget agreement.
But it’s not just the :30 and its ad brethren that have been given short shrift. California’s Tax Credit Program, now in its second year, had an allocation of $100 million this current fiscal year for qualifying features and TV programs. That $100 million dance card was filled in a single day by 30 projects, leaving in limbo another 30 or so eligible productions that filed for the incentives. These pending projects are currently entries on the dreaded wait list. It’s likely that they won’t wait all that long; these projects will just go to other states or countries offering competitive subsidies.
And what of those projects down the road that qualify but won’t bother to file in that California’s allocation for this fiscal year is already used up? Clearly it’s not just the :30 and the 30 wait-listed projects that will go without in California–it’s an untold number of other productions that will wind up elsewhere.
Some would argue that California is being fiscally responsible by not increasing its tax credit allocation to accommodate filmmaking. After all, the state is in a budget crisis.
Yet the fact is that the budget quagmire and shortfall should instead spur on better funded, more inclusive filming incentives in order to dramatically increase sorely needed revenue for the state’s economy. Consider the impact thus far of the California tax credits. In its first year, the program–administered by the California Film Commission (CFC)–allocated $200 million in tax credits to 77 projects. This year, another 30 projects are set to receive an additional $100 million in tax credit allocations. Together, they are estimated to bring $2 billion in direct spending to California communities, which includes $736 million in wages paid to “below-the-line” crew members (electricians, grips, drivers, costumers, etc), according to data compiled by the CFC.
Governor Arnold Schwarzenegger (R-Calif.) said that the incentive initiative has created and retained tens of thousands of jobs while generating spending in the Golden State.
The CFC reported that the 77 first-year projects approved for tax credits will hire 18,200 crew members, 4,000 cast members, and over 100,000 background or “extra” players. These approved projects include 51 feature films, both studio and independent, seven television series and 14 made-for-television-movies.
Meanwhile the Milken Institute, a nonprofit economic think tank, issued a report which noted that while it’s a tough time for the state to afford targeted or expanded tax breaks, “California can’t afford not to” in the case of the filming business. The report went on to read, “The state can’t squander any opportunities to retain and add significant numbers of high-paying jobs.”
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