FEATURE FILMING INCENTIVES
HAPPY CAST, BETTER PRODUCT COUNTRIES AND REGIONS ALL OVER THE WORLD USE TAX INCENTIVES TO LURE FILM AND TV PRODUCTION TO THEIR JURISDICTION, BUT FEW CAN CLAIM TO HAVE HAD CALIFORNIA’S SUCCESS. ANDY FRY REPORTS
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INCE the Golden State’s Tax Incentive Program was introduced in 2009 to stem the tide of runaway production, it has helped generate billions of dollars of business for the local industry. CFC executive director Colleen Bell puts the success of the program down to a number of key factors. “Our state tax incentive isn't the biggest in the world, but it’s backed up by superb infrastructure and crews. Productions that base themselves here know that they are getting the benefits of an attractive tax rebate, as well as the best crews in the world, and first-class service.” At the same time, Bell says it has been carefully targeted. “Right from the start, the architects of the tax credit knew what they wanted to achieve, and designed the program accordingly. It’s now into its third edition and continues to evolve in line with the industry’s core priorities, while at the same time creating jobs and driving economic development for the citizens of California.” Also important is its longevity and consistency. “Program 3.0 was introduced in July 2020 and runs through 2025,” Bell says. “By that time, the program will be 16 years old — which goes to show the level of political support for it. That stability feeds into the industry’s decision-making — both in terms of where to base productions and where to build infrastructure.”
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The current program is worth $330m a year and is reckoned to have generated $2.6bn in production spending in its first year. “Amid the disruption and uncertainty caused by the pandemic, the program continues to work as intended,” Bell says, “creating jobs and opportunity across our state.” One project that has benefited from the tax credit is Netflix’s much anticipated action movie The Gray Man (2022), starring Ryan Gosling. Speaking to CFC executive director Colleen Bell, as part of her Spotlight California series, Netflix co-CEO Ted Sarandos estimated that the film would represent “$100m in below-the-line spending in California”. With approximately 400 crew members involved in the production, Sarandos says the tax credit doesn’t just improve the bottom line: “I count the stars and crews of shows among my closest friends, and there is a real benefit in not breaking up families for six months to go chasing better economics around the globe. I’m a big believer that a happy cast and crew produces a better product.” That assessment is backed by location manager Mandi
LOCATION CALIFORNIA 2022
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21/02/2022 11:59
