While California’s modest tax credit program has had some success keeping the major studios and other Los Angeles producers shooting back home, Canada and other rival locales continue to erode Hollywood’s traditional production base.
That’s the conclusion of the California Film Commission’s latest annual progress report on the state’s film and TV tax credit program.
With most indie film and TV projects not getting produced without tax credits to bolster their budgets, Canada continues to lure production and post-production jobs and spending away from California, the report said.
On the movie front, the film commission surveyed 30 big budget projects in 2013 that had budgets of over $75 million and required big stages and complex sets.
The agency found only two of the big movies shot mainly in California – Star Trek into Darkness and Hangover Part III.
The rest were produced elsewhere, including Elysium in Vancouver and Mexico, and Man of Steel, which was shot in B.C. and in Illinois.
“Collectively, these large-scale film projects employed tens of thousands of well-paid skilled workers and represented several billion dollars in direct spending,” the report stated, measuring the lost business for Hollywood technical crews and facilities.
The film commission indicated that Godzilla and Big Eyes were both set in San Francisco.
Even so, both big budget movie shoots were produced in Vancouver.
The upshot is California in 2013 ranked fourth behind Louisiana, Canada and Britain in being able to snag live-action feature projects, jobs and spending away from Los Angeles.
Canada also ate Hollywood’s lunch on the TV front.
California’s share of one-hour basic cable series was 29% in 2013, with New York and other U.S. states capturing 39% of basic cable series production, and Canada grabbing another 32% of the market.
And an particular sore point for the California Film Commission is Canada’s visual effects industry growing at the U.S. state’s expense.
British Columbia, in addition to its provincial and federal tax breaks, provides an additional 17.5% credit on visual effects work produced in the province; Quebec provides an added 20%,” the report noted.
The film commission pointed to Motion Picture Association of Canada statistics that suggested, in 2009, Canadian provinces generated $260.7 million in revenue from visual effects work.
In 2011, that figure jumped to $435 million.
“U.S. companies, such as Sony Imageworks have relocated to Vancouver – taking roughly 300 jobs with it,” the report stated.