Governor Gray Davis is pitching incentives to Hollywood to keep film and television production in California.
He is proposing a wage-based state tax credit that could save film producers between 50 million to 100 million dollars annually over three years, if it goes into effect in 2004.
In the plan, producers will get a 15 percent tax credit on the first $25,000.00 earned by workers on lower-budget productions shooting within the state.
Industry groups have suggested a number of remedies to counter the problem of runaway production, including the tax credit, which is offered by other countries including Canada.
Labor officials and entertainment industry executives say the Canadian incentive program has cost the United States 25,000 jobs and ten-billion dollars annually for the past three years.