LA City Council Passes Filming Incentives: Response To 'Ugly Betty” Move To NYC

LOS ANGELES – The Los Angeles City Council today adopted a package of incentives to keep productions in and bring more filming to Los Angeles.  These incentives include assistance with identifying parking and with reducing parking costs, the installation of utility nodes in frequently used locations to eliminate the need for generators, and taking the next
steps toward implementing a business tax break for productions.

The incentives were recommended in a report requested by Council President Eric Garcetti after the television show Ugly Betty moved its production from Los Angeles to New York. The report included an analysis by the Los Angeles Economic Development Corporation that concluded a one-hour television program generates more than 180 direct jobs and supports 540 indirect jobs as well as generates $2.2 million in state income taxes and $880,000 in state sales taxes.

“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 Council President Garcetti.

Based on the City Council’s vote today, the recommendations in the report will be transmitted to the appropriate City Council Committee or City Agency for implementation. 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. Recognizing the importance of tax incentives to stopping runaway production, the California State budget also includes a $500 million tax incentive over the next five years.

A copy of the full report is available online.

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