This year’s budget proposals have California legislators again debating whether to keep giving money to filmmakers to keep their productions in the Golden State.
At a time when California is facing a $31.5 billion budget deficit, it’s hard for some taxpayers and lawmakers to justify giving stacks of cash to movie studios and production companies. Compounding the issue, some economists believe the incentives are a waste of tax dollars.
Under Newsom’s proposed budget, the tax credits, which expire in 2025, would be extended for another five years, at a cost of about $330 million per year. Newsom also has proposed that the program should make the credits refundable, which would effectively provide cash to film companies that have no tax liability in California.