Study finds state tax credit created $22 billion in economic output over 5 years – Daily News

The Los Angeles Economic Development Corporation announced Friday, March 18 that California Film and Television Tax Credit 2.0 created nearly $21.9 billion in economic output over five years and supported 110,000 jobs.

Overall, the program is estimated to have created $961.5 million in tax revenue for California, according to analysis by LAEDC, which used data provided by the California Film Commission.

“We doubled the Film and Television Tax Credit program last year because it brought productions to California, generated tens of billions of dollars in economic activity and supported more than 110,000 jobs,” said Governor Gavin Newsom.

“No matter what you’re watching, whether it’s nominated for an Oscar or playing on your TV, we make sure it’s filmed right here in California.”

The study analyzed data from the second generation of the tax credit program, called Program 2.0, which ran from July 2015 to June 2020. A new Program 3.0 succeeded it in July 2020.

According to the analysis, the 2.0 program allocated $330 million a year in tax credits as a way to expand production-related employment, prevent production from leaving the state and increase spending in all of California. For every dollar allocated by the tax credit, California benefited from at least $24.40 in economic output, $16.14 in gross domestic product, $8.60 in wages, and $1.07 in tax revenue national and local.

“The success of this program is not just the jobs created and retained, but the economic engine it provides to other businesses in the region and state,” said Dee Dee Myers, Senior Advisor to the Governor. and Director of Business and Business Office. Economic development. “This LAEDC report reveals just how much that means for the California economy – and why we are so committed to this vital industry here in our state.”

Program 2.0 projects included the current Oscar-nominated films “Licorice Pizza”, “Being the Ricardos”, “Tragedy of Macbeth” and “King Richard”. These four projects generated a total of $82.7 million.

The full study on the Film and Television 2.0 Tax Credit Program is available at laedc.org/2022/03/09/ca-film-tv-tax-credit-study.

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