Thursday, October 15, 2009

LA On-Location Production Down, But Hoping for Boost From Tax Incentive Program

A few more crafty tables are assembled on city sidewalks and an extra smattering of production assistants are doing their darnedest to keep passer-by-tourists from staring right at the camera - all good signs that production is picking up again in Southern California.  However, as local non-profit FilmL.A. reports, the added film and commercial production - up 25.5% and 10.2% respectively for the quarter - is not enough to counteract overall drops in on-location filming days.






FilmL.A. coordinates permits for productions shooting on-location in and around Los Angeles and released a report on October 14th, announcing that filming on-location is down 14.3 percent compared to the same quarter last year.  That's 1,620 fewer days from July through September with crews out and about.


Only Television Subcategories Pilots and Dramas are up in their year-to-date PPD's (permitted production days), and even these gains are slight - 2.4% and 1.7%, respectively.


President of FilmL.A. Paul Audly says in the release, "The year-to-date production numbers confirm the importance of the State's Film and Television Tax Credit Program and the need for the City of Los Angeles' recently passed package to improve the local filming environment."


No doubt this is true.  With so many states - like Michigan, North Carolina and New Mexico - luring film and TV productions away from SoCal with tax incentives and even breaks on local purchases, what's been the motivation to stay?


The legislation signed by Governor Schwarzenegger allows for the California Film Commission to allocate $100 million dollars of tax credits per year, beginning on July 1st, 2009 and extending through 2013.  Qualifying film and TV productions, will be eligible for a credit of 20-25% on applicable production costs for taxable years beginning on or after January 1, 2011. 


Oh, and they can pretty much guarantee glorious sunny days and eerily temperate weather year round.


By comparison, the state legislation for New York - the other film and TV hub - offers a 30% credit and has allocated over $500 million to the effort, which will also be available through 2013.  


Then again, shooting along the Hudson River in January is pretty darn cold.


[Click HERE for New York or HERE for California to find full details on the current tax incentive programs] 




No comments:

Post a Comment