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California Extends Film Tax Credit Program by One Year

1 min readBy: Scott Drenkard

In California, Governor Jerry Brown has signed a one year extension of the state’s film taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. credit program, stretching the effective date all the way out to July 1, 2015. The recently signed Assembly Bill 1069 will allocate an additional $100 million to a program that already has $400 million committed to it.

Felipe Fuentes, the author of the bill commented, “By creating tens of thousands of jobs and pumping billions into our economy, the film and television tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. program has truly been a statewide economic stimulus package.”

But as the Tax Foundation has reported, film tax incentives often create only temporary job positions, and tend to feature bloated job creation claims.