California Film Tax Credits Closer to Extension

Bill continues the film tax credit program for two years

A California bill that aims to keep film and television productions from shipping out to other states overcame a critical hurdle this week.

Getty ImagesThe California State Assembly Appropriations Committee voted unanimously to extend funding for the state's film and television tax credit program on Wednesday.

California allocates $100 million annually toward the credit, which supporters say curbs runaway film production to other states that offer lucrative incentives. The film business had been pushing to extend the credit by five years, but an amendment has limited that period to two years.

Detractors of the program argue that it is costly and ineffective at promoting job growth. Their case was bolstered by a  study released by the California Legislative Analyst's Office in June that found  that the credit resulted in a decline in state revenues.

The bill is expected to be taken up by the full State Assembly for a vote next week.