Free Republic

One budget watchdog says business groups and their legislative allies are hoping to exploit the favorable revenue climate to seek tax credits that could amount to hundreds of millions of dollars, forcing even bigger budget cuts next year. Legislative leaders signed a letter last month agreeing to discuss the tax credit in August, and Gov. Arnold Schwarzenegger has stated his support for it. Nunez, D-Los Angeles, said he will work hard to get the film-credit bill passed this summer. ``If we don't provide tax relief, Hollywood production companies will leave California and we'll be without huge resources for our coffers,''...

Trying to fend off increasingly tough competition from other states and foreign countries, California Governor Arnold Schwarzenegger is expected to announce a plan soon to grant tax breaks for film companies to help them meet production expenses and stay in California. J. Scott Davis

Runaway Film Bill Hits Snag - State lawmakers balk at the cost of proposal to keep production from fleeing California by giving financial incentives to Hollywood. SACRAMENTO — Gov. Arnold Schwarzenegger's script to stem runaway film production in California with as much as $100 million in annual tax breaks is getting panned at the Capitol. The bill by Assembly Speaker Fabian Nuñez (D-Los Angeles), which the governor made a top priority, was on the legislative fast track until Schwarzenegger's fellow Republicans balked, arguing that it amounted to a giveaway for Hollywood. Now, the bill can't even get a hearing. With...

LOS ANGELES - California receives millions of dollars in tax revenue when movies are filmed in the state, but about 60 percent of all productions last year were shot elsewhere, according to a study to be released Monday. The state, for example, loses more than $10 million when a $70 million movie is made outside the state, and $3 million for a 12-episode drama, the Los Angeles County Economic Development Corp. said. Sponsored by labor and industry groups, the 20-page showed that 236 features, or about 40 percent of all productions, were shot partially or exclusively in the state last...