California Film Subsidy Bill Tabled

A bill backed by California Governor Arnold Schwarzenegger, which would have provided $50 million in tax breaks to film companies that keep their productions in California, is apparently dead for the year after state legislators objected. “Hollywood lobbyists have argued that the state’s dominance in entertainment production is in danger because of pressure from Louisiana, New Mexico, Illinois and other states with generous tax-incentive packages, as well as from countries like Canada and Romania with favorable currency and labor rates.” The devastation of Hurricane Katrina, of course, took Louisiana out of the mix for the time being, and many in Mr. Schwarzenegger’s own party questioned such a large subsidy being given to a single industry.