The vote in the Senate Governance and Finance Committee fell short of the five-year funding extension that the entertainment industry had been lobbying for. Today’s 5-1 vote was reported in the Los Angeles Times. If approved by the Legislature, the bill, which is due to expire next July, would set aside $200 million in funding through 2015. A similar bill is working its way through the Assembly. Proponents of the bill have pointed out the need to compete against growing attractive incentives in other states (ie, New York), but the program has been a hard sell in Sacramento as the state deals with a serious budget shortfall. A recent report by the state’s nonpartisan Legislative Analyst’s Office found that the tax credit program results in an overall loss of tax dollars for California, but other reports including one by the Los Angeles County Economic Development Corporation, found that the program has a net positive fiscal impact.
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