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The crisis of runaway production, both in California and nationwide, never seems to stray too far from the headlines thanks to what a political football the issue has become.
Luring more TV and film shoots to Los Angeles
though financial incentives remains a critical concern because of the tens of thousands of jobs that have disappeared in recent years. That’s made figuring out the best way to solve the problem a talking point in the gubernatorial race that will pit the Republican candidate, Steve Hilton, against the Democratic challenger Xavier Becerra in November.
Hilton in particular has drawn attention for his proposal to uncap the total amount of dollars that can be claimed in tax credits, a measure that has worked elsewhere in the U.S., according to Luminate analyst Tyler Aquilina.
“Those are expenses that many states that offer credits allow to be claimed for credits, and California currently does not allow that, which is a big sticking point in the film and TV industry,” said Aquilina on the latest episode of Variety‘s “Strictly Business” podcast. “A lot of people have argued that allowing credits on above-the-line costs would be a big help for their projects.”
Aquilina dug deep into the subject of runaway production in Luminate’s latest special report on the subject, “Hollywood Exodus.” The report is full of the latest relevant data and analysis on the trends shaping a dilemma with global implications.
RELATED STORY: Hollywood Exodus: Why Film and TV Production in Fleeing L.A. and What Can Be Done About It?
No wonder politicians from the local level, including Los Angeles Mayor Karen Bass, to even the national stage are keeping a close eye on the city’s production struggles. California Sen. Adam Schiff has floated the possibility of a federal subsidy, which Aquilina believes will need to get more traction on both sides of the aisle to make headway.
“There seems to be a potential interest in gathering bipartisan support for it, which is obviously what would really be needed to get it through,” he said. “I still think that, really, a push from the White House, or at least an indication from the White House that they support this, is going to be needed to get a lot of Republican lawmakers on board.”
“Strictly Business” is Variety’s weekly podcast featuring conversations with industry leaders about the business of media and entertainment. (Please click here to subscribe to our free newsletter.) New episodes debut every Wednesday and can be downloaded at Apple Podcasts, Amazon Music, Spotify, Google Play, SoundCloud and more.
