Mayor Garcetti today joined Governor Brown as he signed important legislation to more than triple California's film tax credit to boost our entertainment industry and middle class. Since taking office, Mayor Garcetti has made this legislation his top priority in Sacramento. AB 1839 passed through the legislature on August 29, 2014 with an allocation of $330 million per year for five years beginning with fiscal year 2015-16. The legislation prioritizes funding for applicants based on net new jobs created and overall positive economic impact. AB 1839 was authored by Assemblymembers Mike Gatto (D-Los Angeles) and Raul J. Bocanegra (D-Los Angeles). Senator Kevin de Leon and Speaker Toni Atkins played a key role in aligning the bill's funding with jobs.
"They call the problem 'runaway production.' But let's be clear -- production and production jobs aren't running away from California. They are being lured away by big financial incentives from other states. Today, we fight back. This legislation levels the playing field to protect our signature industry and the middle class jobs it supports. This legislation targets the heart and soul of this industry and our middle class – people who swing hammers, run cable and serve food on set so they can pay the bills and spend money in our economy. As Mayor, my number one job is to protect and create jobs. That's why I made this legislation my top priority in Sacramento," Mayor Garcetti said.
Mayor Garcetti has made protecting and expanding our entertainment industry a centerpiece of his administration because it is critical to the strength of our middle class and overall economy.
Over the past year, he has helped lead a statewide coalition of policymakers and business leaders to push for and shape expanded film tax credit legislation and created the first-ever Mayor's Office of Motion Picture and Television Production.
Prior to the ceremony, Mayor Garcetti held a roundtable discussion with industry, labor, and political leaders to discuss how to collectively implement the new legislation. Entertainment industry guilds and unions were instrumental in the passage of the AB 1839 and, along with their studio counterparts, pledged their ongoing support for municipal coordination and marketing activities.
Mayor Garcetti also thanked Film Finances, Inc. and Entertainment Partners for their generosity in supporting the signing event held today at the TCL Chinese Theater in Hollywood.
The $1.65 billion total investment ($330 million per year for five years) will yield, based on current figures from the California Film Commission, $12.7 billion in total aggregate direct spending by projects in-state, including an estimated $4.05 billion in qualified (below-the-line) wages.