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California Loses Nearly $2 Billion When Movies and TV Don't Film in State

A lot of film and TV projects took their business out of state. The vast majority opt to shoot in states where tax credits were available.

California lost nearly $2 billion in production spending over the last four years, as film and TV projects took their business out of state, according to a new report.

 

In a study released Wednesday, the California Film Commission found that from 2010 to 2014, so-called runaway projects accounted for almost $2 billion in production spending outside of California.

The commission, which administers California's film and TV tax credit program, analyzed projects that applied for, but did not receive, a state tax credit due to limited funding.

The state allocates $100 million annually in sales and income tax credits to the film industry, but funding is used up on the first day it is available. This year, the state received a record 497 applications for the funds on June 2, the deadline for an annual lottery that is used to divvy up the credits. Only 26 projects made the cut, while the remainder were put on a waiting list.

So what happens to the projects that don't win the lottery?

The California Film Commission concluded that the vast majority opted to shoot in states and countries where tax credits were available.

Daniel Luzer is GOVERNING's news editor.
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