Entertainment Production Tax Cap Wins Committee Support

The city of Los Angeles’ Jobs and Business Development Committee passed a motion to support a proposal to increase the city’s entertainment production tax cap, which would extend tax breaks to hundreds of production companies. The city currently assesses tax liability on entertainment production companies through a flat fee of $145 on production costs up to $2.5 million, with $1.30 assessed for each additional $1,000 in production costs. The new cap would be raised from $2.5 million to $5 million under the proposal. At least 535 production companies within the city would receive reductions in their taxes if the ordinance is passed. Councilman Richard Alarcón, chairman of the Jobs and Business Development Committee, introduced the motion. Leaders from the Valley Industry and Commerce Association said such a cap increase would benefit the local economy. “The entertainment industry and other industries it supports are vital to the Los Angeles economy, but other cities and states are offering incentives to lure production away,” said Daymond Rice, the organization’s chair. “Raising the Entertainment Production Cap is one of the many things the city needs to do to protect local filming.” The motion will next be considered by the City Council. Jessica Selva