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	<title>Media Match &#187; Ugly Betty</title>
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		<title>No Help for Runaways</title>
		<link>http://www.media-match.com/usa/blog/index.php/uncategorized/no-help-for-runaways/</link>
		<comments>http://www.media-match.com/usa/blog/index.php/uncategorized/no-help-for-runaways/#comments</comments>
		<pubDate>Thu, 19 Jun 2008 21:48:50 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[entertainment]]></category>
		<category><![CDATA[feature]]></category>
		<category><![CDATA[film]]></category>
		<category><![CDATA[Hollywood]]></category>
		<category><![CDATA[Los Angeles]]></category>
		<category><![CDATA[production]]></category>
		<category><![CDATA[tax]]></category>
		<category><![CDATA[Television]]></category>
		<category><![CDATA[tv]]></category>
		<category><![CDATA[Ugly Betty]]></category>

		<guid isPermaLink="false">http://www.media-match.com/blog/?p=9</guid>
		<description><![CDATA[I’ve seen more and more articles recently decrying “runaway film production” – film and TV shows leaving our city and our state, and heading toward more tax-friendly environs.  I have heard for years about Canada, for instance, offering a way out to productions seeking to trim costs… their streets and their locations serve well as [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="0in 0in 0pt;"><span style="Times New Roman;">I’ve seen more and more articles recently decrying “runaway film production” – film and TV shows leaving our city and our state, and heading toward more tax-friendly environs.<span style="yes;">  </span>I have heard for years about Canada, for instance, offering a way out to productions seeking to trim costs… their streets and their locations serve well as a substitute for American locales, but at lower prices (for both location use as well as crews).<span style="yes;">  </span>But I didn’t know why, in the past year, the issue had ballooned.<span style="yes;">  </span>So I decided to do some research, to discover what moves the “competition” had made, and what (if anything) our state had done in the past few years to halt this trend.</span></p>
<p class="MsoNormal" style="0in 0in 0pt;"><span style="small;"><span style="Times New Roman;">One article I found dated back to November of 2006.<span style="yes;">  </span>It talked about the need to retain film production in Los Angeles, and was written by our own mayor, Antonio R. Villaraigosa.<span style="yes;">  </span><span style="EN;">He was writing the piece in response to an editorial in the LA Times, which criticized closing the 105 in order to film a scene for “Live Free or Die Hard”; he stated in </span>simple yet concise tones the need for our legislators to do all they can to keep these productions from heading elsewhere.<span style="yes;">  </span>He writes: “<span style="EN;">Today, only 11% of all feature films are being made in California, and we cannot afford to cede this integral industry to other cities, especially as competition grows more fierce.”<span style="yes;">  </span>He then goes on to cite that competition, pointing out that</span><span> </span>“14 states [have] passed new tax incentives or improved existing incentives for film productions,” and the “troubling, long-term implications to that trend.”<span style="yes;">  </span>Finally, he rounds out his opinion piece by mentioning his support AB 777, a bill which could provide tax incentives for productions to stay in California.<span style="yes;"> <br />
</span></span></span><span style="Times New Roman;"><br />
Sounds good to me.<span style="yes;">  </span>So, this being a year-and-a-half ago, I did some research to find out what happened to “Assembly Bill 777 – Motion Picture Production Tax Incentives for California”.<span style="yes;">  </span>While some criticism was levied against it with respect to its effectiveness, or the cost to California taxpayers, overall the bill seemed to be a good start.<span style="yes;">  </span>The only problem is, this bill seems to have disappeared.<span style="yes;">  </span>The most recent reference I could find to AB 777 was dated February of 2007, and talked about cruelty to elephants.<span style="yes;">  </span>Obviously, the bill had had a makeover.</span></p>
<p class="MsoNormal" style="0in 0in 0pt;"><span style="Times New Roman;">Searching for similar bills led me to an article from June of 2007.<span style="yes;">  </span>One line in particular caught my eye, because of its familiarity:<span style="yes;">  </span>“We will not sit idly by and watch this homegrown industry disappear because other states are being more aggressive.” This from Majority Leader Karen Bass, of Los Angeles.<span style="yes;">  </span>Very similar to Villaraigosa’s stance, and yet again, I can find no follow-up article discussing a bill being passed.<span style="yes;">  </span>It seems this push, too, had stalled.</span></p>
<p class="MsoNormal" style="0in 0in 0pt;"><span style="small;"><span style="Times New Roman;">I did, however, find an article from April of this year, which discusses the <span style="EN;">New York</span><span style="EN;"> State</span><span style="EN;"> legislature’s plan to triple their film and TV tax credits for productions within its borders.<span style="yes;">  </span>The article goes on to say how “New York City [in particular] also offers a 5% credit, so city shoots can reap a total of 35%.”<span style="yes;">  </span>And what was the reasoning for these increased credits?<span style="yes;">  </span>Was the legislature responding to some move made by California’s lawmakers, a sort of tit-for-tat?<span style="yes;">  </span>Was it trying to break the west coast’s hold on film and TV production?<span style="yes;">  </span>No, these incentives were done “in a bid to regain an edge over [New York’s] credit-happy neighbors Connecticut, New Jersey and Massachusetts.”<span style="yes;">  </span>That’s right – not to counter any moves that California or Hollywood had made, but to beat the moves made by <em>other states</em>.</span></span></span></p>
<p class="MsoNormal" style="0in 0in 0pt;"><span style="small;"><span style="Times New Roman;"><span style="EN;">Which finally led me to this article, from May 2008, in which </span>Governor </span></span><span style="none;"><span style="Times New Roman;">Arnold Schwarzenegger</span></span><span style="Times New Roman;"> calls for legislative action, saying “California must increase tax incentives to movie and </span><span style="none;"><span style="Times New Roman;">television</span></span><span style="Times New Roman;"> studios as a way to keep them from moving their productions out of state.”<span style="yes;">  </span>These comments came days after ABC Studios said it was moving production of &#8221;</span><span style="none;"><span style="Times New Roman;">Ugly Betty&#8221;</span></span><span style="Times New Roman;"> from Los Angeles to New York – meaning the siphoning has extended to include not just individual shoots, but <em>entire productions</em> as well.<span style="yes;">  </span>The article adds that Schwarzenegger has been pushing for such legislation for four years, but so far has found no success.</span></p>
<p class="MsoNormal" style="0in 0in 0pt;"><span style="Times New Roman;">That is our loss – and this loss extends beyond the revenue generated by the productions themselves.<span style="yes;">  </span>It seems simple to say, but keeping these shoots in Los Angeles and California in general can only have a positive impact, especially on tourism.<span style="yes;">  </span>Because what else are we primarily known for, if not being the entertainment capital of the world?<span style="yes;">  </span>Take away our film and TV shoots, and you take a major part of our identity.</span></p>
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