California Film Commission: workforce development program.
The bill proposes amendments to the Corporation Tax Law which will allow the California Film Commission to allocate tax credits to qualified taxpayers who meet specific production parameters. For taxable years beginning on or after January 1, 2011, qualified taxpayers can receive a credit against their tax liability for a percentage of their expenditures related to film production. Specifically, it allows a 20% credit for general productions and a 25% credit for productions such as television series that relocate to California or independent films, thereby incentivizing further investment within the state.
Assembly Bill 1664, introduced by Assembly Members Bocanegra and Calderon, seeks to amend certain provisions related to tax credits for the film industry in California. The bill establishes a workforce development program aimed at enhancing the availability of skilled labor for the film and television industry. This program is designed in accordance with the Career Readiness requirement already mandated for the California Film Commission, indicating an alignment with broader efforts to enhance education and training in industry-specific sectors.
Overall sentiment around AB 1664 mirrors a broader support for pro-business initiatives aimed at revitalizing the state's film industry, which has seen fluctuations in production due to competition from other states and countries. Supporters of the bill argue that these tax credits will stimulate job creation and economic growth, ultimately benefiting local economies. On the other hand, there exists concern among critics regarding the potential for misuse of tax incentives and whether they adequately address the disparity in hiring practices within the industry.
Notable points of contention regarding AB 1664 include the balance between providing substantial tax incentives for film productions and ensuring that these incentives lead to real economic benefits for California's workers. The bill also underscores the critical need for coordination between educational institutions and industry leaders to ensure that the workforce is both adequately prepared and diverse. Critics have pointed out that without stringent oversight, the tax credits might benefit large production firms without delivering equivalent benefits to local workers.