Study Shows California Losing Out on Film Biz

If you go to California to see the glitz and glam of a Hollywood production, you may have to rethink that celeb-spotting vacation and pack your bags for anywhere BUT the Golden State.

With movie-making costs sky-rocketing, films simply cannot afford the high price tags of California property. Last year approximately 60 percent of all productions were shot elsewhere, according to a study released Monday, August 22. The state, for example, loses more than $10 million when a $70 million movie is made out of state, and $3 million for a 12-episode drama, the Los Angeles County Economic Development Corp. said.

According to the report, "The real threat is that this major economic engine could gradually leave the state, one project at a time."

In the meantime, California lawmakers are currently proposing legislation to offer tax breaks, in an attempt to lure producers to continue shooting films, television shows and commercials in the state. Gov. Arnold Schwarzenegger, a former actor, is pushing the legislation that would provide a 12 percent tax credit on a feature film's spending, with a cap of $3 million per production. Television movies could get an additional 3 percent credit.