from Variety

Hollywood Continues to Flee California at Alarming Rate

 / Film Reporter / @Variety_DMcNary

James Walton

When Paul Audley took the job as president of FilmL.A. in late 2008, he was astounded to discover that physical production on the $70 million pic “Battle: Los Angeles” wasn’t being done in Los Angeles.

“It stunned me that the movie was shooting in Louisiana, and that the state of California was letting this happen,” he recalls.

In the subsequent five years, the situation has only worsened, despite the film production incentive program California enacted in 2009, which provides for $100 million a year in tax credits for what’s usually 20% of production costs. That’s significantly smaller than programs offered by other states such as New York, which offers $420 million a year in credits for 30% of production costs.

The trend has been mounting for high-profile films set in the Golden State to be filmed almost entirely outside California, due to lucrative tax breaks elsewhere that producers can’t turn down. One key component of new legislation to strengthen California’s incentive program, introduced Feb. 19, would raise to $100 million the current budget cap of $75 million on eligible productions. To drive home the need for state support, attendees at a Feb. 22 rally in Burbank held by Hollywood unionists were handed petitions to send to Sacramento citing that only one of 41 big-budget feature films shot in 2012 and 2013 was shot entirely in California.

The latest example of a locally set runaway is New Line’s upcoming earthquake thriller “San Andreas,” in which a helicopter pilot played by Dwayne Johnson rescues his daughter in San Francisco after a 10.0 quake. Except for six planned days of shooting in San Francisco, the entire $100 million movie will be made in Australia at the Village Roadshow Studios in Gold Coast, Queensland.

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