Gov. Gavin Newsom has proposed a five-year extension of thecreated back in 2009
But now the state’s nonpartisan Legislative Analyst’s Office has thrown cold water on the idea that the film tax credit program is particularly effective. Bluntly, the LAO notes the program “does not pay for itself,” discrediting a favorable study by the Los Angeles County Economic Development Corporation, which claimed that each $1 of film tax credit spending yielded $1.07 in state and local government revenue.
While the LAO notes the film tax credit likely does increase film production activity by a few percentage points, “Based on our research review discussed above, we do not recommend considering the film tax credit as a reliable tool to grow the state’s overall economy.”