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Show Us the Money: Film Tax Incentives Keep Dollars in L.A.

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Sep 24, 2014
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This past week, Gov. Jerry Brown signed a bill into law, AB 1839, creating new tax incentives for the film industry, with a goal to push production companies to film in L.A. despite lucrative tax incentives in other states.

According to the Los Angeles Times, the new bill, signed into law this past Thursday by Governor Brown (in front of the Chinese theatre alongside Warren Beatty no less), will triple funding: it “boosts funding to $330 million annually over five years beginning in 2015.”

Per ABC News, at a ceremony at the TLC Chinese theatre, Brown enthused: “California is on the move and Hollywood is a very important part of that… It isn’t just government, it isn’t just people in business, it isn’t just labor unions, it’s all of us working together.”

lbalton

Lori Balton photo by Christina Gandolfo

Lucrative tax incentives in other states have slowly been draining L.A. of it’s entertainment production services and talent. From location scouting to post-end design, the migration from California to states offering lucrative tax incentives for filming has eroded an important part of the L.A. economy. This erosion is not just economical, but emotional as those who work in the industry increasingly find themselves away from their homes and families.

Even from a real estate perspective, the movement away from Hollywood as an epicenter of film production has adverse repercussions. Why keep a home when you are away from it most of the time? Why invest in L.A. if its not investing in you?

Veteran location manager and scout, Lori Balton, founder and former president of the Location Managers Guild of America , and a member of the Academy of Motion Pictures Art and Sciences tells us: “I’ve been a location scout for over 25 years and last year, I was only home for four weeks out of the year. I’m so hopeful that this brings feature films back to L.A.”

Balton and some of her colleagues were instrumental to the bill’s passing. “Ed Duffy fought long and hard,” says Balton, referring to the Business Agent for Teamsters Local 399 Hollywood. Duffy is a voice for casting directors and location managers and remains a passionate supporter of the cause. He was even right there, alongside the mayor at the signing.

Kenny Brant, a well-respected location manager and scout working since 1997 tells us “If you get good productions filming here, then other productions will be attracted to follow, especially if the higher quality, bigger productions are filming again in L.A. The more productions that come back here, the more will follow. Most people are going to stay around the hub, so ultimately the tax incentive is definitely going to help, not hurt and create more jobs…if the jobs aren’t here then people aren’t going to invest here. People spend their money first where they live.”

Many of the entertainment industry professionals who have found themselves away from home would rather stay in the Los Angeles they love. While travel can be exciting, there is also a sense of pride in knowing that Hollywood, the birthplace of the entertainment industry will have a chance to regain its footing and reclaim its power. And that, is a scene we all would like to see.

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