Runaway Production Bill Continued to Next Year

Political discord in the California legislature has forced supporters of an anti-runaway production bill to try again for passage in 2006.

Assembly Speaker Fabian Nunez will instead continue building support for the measure, which sought to subsidize a 12 percent tax credit on wages and other productions. If passed, the measure would have offered up to $3 million per production. Some TV shows would have been eligible for as much as a 15 percent break and some commercial production companies could have seen a ten percent credit.

In a letter addressed to Gov. Arnold Schwarzenegger, Nunez, the bill’s author, and other lawmakers said they remain committed to including the tax incentives as part of the budget to be passed next year.

“As you know, the motion picture and television production industry is a major contributor to our economy,” Nunez wrote. “However, other states and nations are offering significant tax incentives to lure this important homespun industry away from California. That is why the tax incentives are essential to keeping motion picture and television production in California.”

Republican Assembly leader Kevin McCarthy (R-Bakersfield), Senate President Don Perata (D-Oakland), and Senate Republican leader Dick Ackerman (R-Irvine) also signed the letter.

Many in the industry, while disappointed that the bill did not pass this year, were nevertheless relieved that the bill was not turned down outright, and will be carried over to January, the start of the next session.

Two previous anti-runaway bills were killed in committee.

“As policy makers in this state, we must take a close look at why we are losing jobs to other states and countries,” Ackerman said. “We must keep the jobs and industries in our state while finding ways to encourage more opportunities for California’s workers. I look forward to working with leaders of both Houses to make that happen.”