Amy Lemisch

April 19, 2015

Los Angeles Production Slides 3.1% in First Quarter!

April 14, 2015 | 12:00PM PT

Dave McNary

A sharp decline in feature film activity pulled down overall on-location production in Los Angeles during the first quarter by 3.1% to 8,707 shooting days, according to FilmL.A.

Tuesday’s report came with the state of California transitioning in coming months to a tax credit program that’s been more than tripled in size to $330 million in annual allocations.

Regional feature production in Los Angeles decreased 15.4% in the first quarter to 926 days — 168 days fewer than the first quarter of 2014. Movies that received California state tax credits generated 42 days of shooting, including “Drive, She Said,” “Message From the King,” “Scouts vs. Zombies” and “The Perfect Guy.”

TV activity edged up 1.7% for the quarter to 3,312 days as the TV drama category surged 29.7% to 1,058 days and reality jumpd 19.8% to 1,245 days, offsetting losses for TV pilots (down 19.4% to 257), TV sitcoms (down 14.8% to 304) and Web-based TV (down 12.2% to 202). Shows covered by the state incentive generated 142 days, including “Hit the Floor,” “Justified,” “Murder in the First,” “Stitchers” and “Teen Wolf.”

“We are grateful for the increased production, especially in television, associated with the current tax credit,” said FilmL.A. president Paul Audley. “We remain hopeful that the region will also see gains in the feature category once the new credit adopted in AB 1839 takes effect in a few months.”

Commercial production increased 6.2% during the quarter to 1,435 days including spots for Best Buy, Bose, Honda, TJ Maxx, Samsung and Yelp. Other categories, including student films and musicvideos, declined 7.5% to 3,034 days.

Shooting in California is likely to jump later this year in anticipation of the state increasing the annual allocation, starting with fiscal year 2015-16 and lasting for five years. It will expand the eligibility to include big-budget feature films and new one-hour drama series, categories of production that have migrated away from the state.

California Film Commission director Amy Lemisch disclosed last month that $90 million of the first $100 million for the 2015-16 fiscal year will go to continuing the allocations for TV series that are returning for another season. More than $77 million of the $100 million available for 2014-15 was allocated to a dozen returning series, led by $11.5 million for “Teen Wolf.” The expanded program has $230 million in credits left for the 2015-16 fiscal year. The new law ditches the lottery system and sets percentages — 40% for new dramas, movies of the week, miniseries and recurring TV series; 35% to features; 20% to relocating TV series and 5% for independent features.The commission will replace the lottery with a new jobs ratio program in May. The application period for $55 million in TV projects and $28 million in relocating TV series will be May 11-17, while the application for features films is July 13-25.

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Arl

The Ol’ SAG Watchdog

*Photo selected by Watchdog

April 3, 2015

California holds its final film tax credit lottery!

Arlin Miller

... Film Big Deals TV California Film & Television Tax Credit Program

By Richard Verrier LA Times

A new and expanded tax credit program is intended to keep more production from fleeing California

The California Film Commission this week held its final film tax credit lottery, closing the chapter on a controversial program that frustrated many film producers.

On Wednesday, the commission held its seventh and final lottery as it phased out the old film incentives program with a new and expanded version intended to keep more production from fleeing California.

The lottery was typically oversubscribed: The commission said 18 independent films were selected at random from 246 applications for tax credits. The commission did not identify the projects, saying their applications were subject to further review. Another 228 applications were put on a waiting list.

(Comparisons with last year are difficult because this year’s lottery was limited to independent films. That’s because most of the incentive money was gobbled up by existing television shows such as “Teen Wolf” and “Pretty Little Liars” that received priority under the old program).

But independent film producers who didn’t make the cut will have other opportunities later this year to apply for incentives, which allow filmmakers to recoup up to 25% of expenditures on crew member wages and other qualified production costs.

“The good news is that all of these productions will get a second chance to apply for the money,” said Amy Lemisch, executive director of the California Film Commission.

Last year, the Legislature signed a law to disband the lottery program and replace it with an expanded program that will triple funding to $330 million annually. The new program also allows more projects to qualify, such as big-budget features and TV pilots.

Instead of using a lottery, the new system will award credits based on a “jobs ratio” that takes into account how many people productions employ relative to the size of their credit. Applicants can boost their ratio if they do visual effects work in California or film outside the Los Angeles zone.

The Legislature also established separate pools of funds: 40% will go to new dramas, movies of the week, miniseries and recurring TV series; 35% will go to features; 20% will go to relocating TV series and 5% will be set aside for independent features.

The commission will take applications May 11-17 for studio TV projects and July 13-25 for independent and feature films. A third allocation will occur sometime in the winter.

“We are receiving lots of inquiries from the studios about the program and we very much anticipate they are looking to submit for a variety of projects,” Lemisch said.

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Arl

The Ol’ SAG Watchdog

*Photo selected by Watchdog