The agreement falls short of a full carveout for the entertainment industry from a $5 million annual limit on corporate tax credits.
\n\nCalifornia lawmakers are closing in on a deal to help film producers who are facing new limits on their ability to monetize production tax credits.
\n\nThe agreement falls short of the entertainment industry’s goal of a full exemption from a $5 million annual cap on corporate tax credits, according to multiple sources.
\n\nThe state budget, approved in June, imposed the across-the-board limit for the next three years in a bid to stabilize state revenues. The Motion Picture Association and a coalition of Hollywood unions protested the measure, saying it would hamstring the state’s $750 million incentive for film and TV production by making it impossible for larger companies to redeem their credits.
\n\nIndustry stakeholders and their allies in the Legislature — led by Assemblyman Rick Chavez Zbur and Sen. Ben Allen — have been pushing for a full carveout from the cap. But the deal, set to be announced this week, offers more limited relief.
\n\nAccording to sources familiar with the talks, the agreement would exempt tax credits for independent film productions, while creating a mechanism to accelerate…
Original source: https://variety.com/v/tv/
