LA approves incentives package (VAR, THR, DHD)

By Nancy Tartaglione

A package of film incentives spearheaded by Los Angeles City Council president Eric Garcetti has been adopted, according to media reports today. While there are no tax credits yet, provisions include lowering parking costs. The program also calls for guidelines to be developed for a business-tax break for productions.

The move was spurred on after "Ugly Betty" decamped from LA to NY for this season. In a report requested by Garcetti, an analysis by the Los Angeles Economic Development Corp. determined that a one-hour television program generates more than 180 direct jobs and supports 540 indirect jobs and generates $2.2 million in state income taxes and $880,000 in state sales taxes.

The state of California previously approved a $500 million production tax credit incentive program which will go into effect in July.

According to a council statement, The Office of Finance, Chief Legislative Analyst and Chief Administrative Office will study the business tax incentive and develop a proposal that will be submitted to the City Council for review and approval.

"The entertainment industry is a key economic driver for Los Angeles, and we need to do what we can to keep production where it belongs - in the entertainment capital of the world. This study quantifies what we have always known to be true - runaway production means fewer middle class jobs for Angelenos and hurts our economy. Today we move forward with providing real incentives to keep filming here and to address barriers to production like the need for better access to parking and utilities," said Garcetti in a statement.

Meanwhile, Deadline Hollywood Daily reports that Hollywood location managers for TV shows and feature films have joined with Jodi Strong, director of production planning for Film LA, in protesting a Request for Proposal of new permit timelines at the next LA City Council meeting.

The Council is also said to be thniking about letting the LAPD attempt to take back jurisdiction over TV and movie location sets by replacing movie cops with off-duty active police.

Location managers have started a "Hollywood In Crisis" website, and on-line petition, reports DHD, in an effort to show the effect this would have on production costs and liability issues.