Gov. Arnold Schwarzenegger wants millions of dollars in tax breaks for film and television companies that shoot productions in California, according to a copy of the proposal obtained by The Times.
The proposal, part of his plan to stimulate the state economy, is similar to Schwarzenegger’s previous bids for such a tax break. The Legislature has rejected those efforts in the past. Some lawmakers and tax experts call the idea a giveaway for companies that were unlikely to move out of state.
Film industry officials say the tax credits are essential to keep California competitive, especially as the value of the dollar rises and Canada once again becomes an economical place for production companies to locate. California is one of only 10 states that do not offer financial incentives to movie and television companies.
The governor is expected to unveil the proposal this week, after the Legislature opens a special session to address the state’s fiscal crisis.
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Los Angeles Times