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21.10.2015
Los Angeles is not resting on its laurels, however, and is putting in place new legislation that will ensure that the city remains competitive in job growth. While production jobs are returning to Los Angeles, the local industry must continue to find ways to keep existing jobs in the region and bring new ones in, but the progress is encouraging. On Wednesday, California governor Jerry Brown approved a new film tax credit for the state that will bring its credits inline with New York, Louisiana, Georgia, and others. Instead of the controversial lottery system that was in place, tax credits will now be allocated based on the number of jobs created by each project.
California will offer tax credits of 20% to 25% with an additional 5% added to productions outside of Los Angeles, which was added to gain broader support from legislators across the state. The new film tax credit should go a long way in reversing the runaway film and television production that has plagued California for the last several years. Los Angeles mayor Eric Garcetti campaigned on bringing new jobs to Los Angeles, and a big part of that promise was curbing runaway film and television production.
There has been a great deal of talk lately about Los Angeles’ runaway production problem. A Milken Institute study from 2010 has more information on the cost of runaway production in terms of jobs and monetary figures.


Film production is still almost a third below its peak in 2005, and television production is well below its peak in 2007—its growth has been driven by reality programming.
With national employment in film and television production falling an average of 11% each month year over year so far in 2014, productions are looking to lower overhead costs and are returning to Los Angeles where the infrastructure is already in place. More staff will be added to the Department of Parks and Recreation, which manages city property, and the Department of Transportation will look for ways to improve its announcements of street closures for filming. However, with the compromise, the tax credit will be extended for an additional year, according to The Los Angeles Times.
2020 Commission's silence on Hollywood jobs 'surprising'Film industry advocates say they're puzzled by the panel's failure to address the loss of entertainment jobs. Even though there has been overall growth in the entertainment industry since 2005, Los Angeles has been steadily losing film and television production jobs to other states and countries with better incentives, cheaper labor, and cheaper cost of living.
Additionally, a list of city-owned properties available to filmmakers will be put together, and there will be regular surveys of filmmakers receiving permits. Furthermore, FilmLA’s Philip Sokoloski states that a large percent of any improvement is due to the tax incentives. Since taking office, Los Angeles mayor, Eric Garcetti, has taken steps to rectify the situation by appointing film czar Tom Sherak, as well as working closely with Sacramento to get new incentives passed and lobbying MPAA chief, Chris Dodd, to leverage national attention to stem the runaway production.


Since the Golden Age of Hollywood, Los Angeles has built up an infrastructure for the production of television and film, including secondary industries based around production. The LAEDC says much of it went to other states offering film incentives and tax breaks to the industry.During the same 2004-2011 period, New York added 14,100 jobs while Georgia saw an increase of nearly 800 jobs. It used to be that if one wanted to make it in film or television, he or she would have to move to Los Angeles.
Now, with digital editing and the ability to film on digital media, anyone can become a filmmaker, there are no longer the same barriers to entry. The diminishing production infrastructure and better incentives elsewhere will continue to erode the available film and television jobs in Los Angeles unless lawmakers and executives in LA are able to turn the tide of runaway production through more tax incentives.



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