The film and TV production industries in Los Angeles have been receiving generous tax incentives, following a law signed last year by Jerry Brown, California’s Governor. Some argue that this initiative has been the driving force behind the increase in location shoots throughout the region.
During the third quarter of 2015, there was an escalation in on-location filming of 3.8% compared with the same period last year. According to FilmLA, a third of this can be attributed to incentive-qualified projects.
This is great news for LA’s economy. According to Don Knabe, Los Angeles County Supervisor, “Los Angeles County can never take for granted its history and position as the center of the entertainment industry. The impact of the California Film & Television Tax Credit has already made a huge impact on our ability to compete with other markets and their aggressive pursuit of production business. We must continue to work together across the region to retain this critical industry which provides hundreds of thousands of jobs, directly and indirectly, and billions of dollars to our economy.”
Aside from these tax incentives, there are other initiatives being taken to boost LA’s economy. For example, the Economic and Workforce Development Department, “strives to improve the economic climate of Los Angeles through the provision of financing, technical assistance, training, business tax incentives, and workforce programs.” This includes: Business Incentives and Financing Options, Business Transitions and Downsizing Services, Worksource Centers, Employers and the HireLA Youth Program, etc.
Tax incentives really make a difference to people choosing where to do business. As FilmLA pointed out, “One barometer: There were 2,057 shooting days for scripted television shows filmed on location in the Los Angeles region for the three months that ended Sept. 30, a 54% increase from the same period last year.”