Report Warns That California Isn't Doing Enough to Retain Movie, TV Productions

While the Milken Institute praises the state's efforts to stop runaway production, it argues that passing the pending extension of the $100 million annual tax incentive program still isn't enough to remain competitive.

Independent economic think tank the Milken Institute on Thursday issued an in-depth report that praises California’s efforts to stop runaway production, makes the case for extending the tax credit program and suggests ways the Golden State’s incentive program can be improved to attract as well as retain movie and TV productions.

The most important element in revising the incentives is to attract new productions to the state, rather than pursuing productions that are leaving in pursuit of the lowest overall costs,” wrote Kevin Klowden, I-Ling Shen and Ka Wai Ho, authors of the report. “California cannot and should not match states that are providing the highest level of tax breaks and incentives, whether due to higher costs such as in New York or to make up for a smaller pool of skilled film professionals. Instead it should combine strong incentives with a combination of greater flexibility and availability in order to meet the demand that already exists.”