Legislation to expand California's film and TV tax incentives has cleared its first hurdle in the State Senate, a month after the Assembly approved the bill unanimously.
The Senate Governance and Finance Committee approved Assembly Bill 1839 on a 4-0 vote Wednesday -- but with chair Lois Wolk abstaining after expressing reservations that there's still no dollar figure for how much in tax credits will be allocated.
Wolk said she opposed provisions in AB 1839 that provide for transferability of the credits. Assemblyman Mike Gatto, co-author of the bill, told Wolk that those issues will be addressed soon.
Gatto told the committee that the bill will persuade producers from moving projects to other states and countries, where incentives are currently more generous -- and help preserve middle-class jobs and retain the state's production infrastructure.
"When the infrastructure is gone, it's gone," he added.
Los Angeles Mayor Eric Garcetti has called for an amount that is competitive with New York, which gives out about $420 million annually.
The proposed expansion of the program -- which currently allocates $100 million annually -- would take effect on July 1, 2016. The legislation would expand the program by making big-budget movies and most TV series eligible for the credit, along with credits for such post-production activities as visual effects and music scoring. The bill will next go to Senate Appropriations.
The vote came a day after a report was issued from the FilmL.A. organization showing that Los Angeles has lost its leadership in one-hour drama pilot production for the first time with the 2013-14 development cycle seeing New York retain 24 drama projects -- a convincing lead over the 19 drama projects retained in Los Angeles.