Loading...
The Association of International Commercial Producers (AICP) has updated its membership about efforts to pass SB 370, the Golden State Commercial Tax Credit Program. After meeting with members of the Senate Governance & Finance Committee in Sacramento, the organization remains confident that commercial production is recognized by lawmakers “as a statewide economic generator of revenue and employment for California.”
One remaining impediment to passing commercial tax credit legislation is the question of where the money would come from. Proponents are seeking $15 million in annual funding for the credit program. There are three possibilities for obtaining those funds:
- Take the $15 million out of the existing $100 million already allocated to the film tax credit. This is the least likely to fly in Sacramento or Hollywood, as it would tap the already limited funds available to productions seeking the film tax credit.
- Add $15 million to the $100 million cap, and roll the two credit programs together.
- Find a separate funding source for the $15 million, and make the commercial tax credit a standalone program.
Based on talks with the senate committee, the AICP has identified the third option as the way to move forward, having agreed with labor unions and the Motion Picture Association of America (MPAA) “to seek a standalone tax credit that reflects the unique business model and nature of our industry.”
To bolster its case, the AICP is seeking letters of support for SB 370 from member companies. Forty-three member companies submitted letters that helped get the legislation written initially; the association says additional submissions will help strengthen the economic argument for a commercial tax credit in California. Particularly of interest are anecdotes about commercial production that has been taken out of state due to tax credits elsewhere.
The AICP has provided a draft letter here. If you want to submit a letter, you can print it on company letterhead and send it to:
The Honorable Ted Lieu
State Capitol, Room 4061
Sacramento, CA 95814
The association also requests that you send a PDF copy of letters to [email protected].
