California Assembly Moves to Extend Schwarzenegger's Film & TV Tax Credit

The bill, which would allocate another $500 million for film and TV productions, still requires approval by the state senate

California's state assembly has passed a bill that would extend tax breaks to film and television productions for at least five more years, the Los Angeles Times reports. The bill passed with a 72-1 vote.

The credits, which were passed into law under then-governor Arnold Schwarzenegger in 2009, are currently set to expire in 2014.

The credits were established to help stem the flood of productions leaving California for other states. Since they were established, the credit plan has allocated more than $300 million in credits to various productions, with $100 million more expected to be approved for the upcoming fiscal year, which begins July 1.

Should the extension be passed, an additional $500 million in funding would be freed up for TV and film productions.

"What we're doing with this bill is retaining and creating jobs by leveling the playing field and making California competitive again,'' said Assemblyman Felipe Fuentes (D-Sylmar), who was a sponsor of the bill.

In order for the extension to pass into law, it must first be approved by the state senate, with a vote expected this summer. It's also uncertain whether California's new governor, Jerry Brown, will approve of the bill, given his call for budget cuts.