The best way to retain these productions is to minimize the attractiveness of Canada s tax credits by offering credits of our own. AB 358 would give California filmmakers a 10 percent tax credit for wages paid by the filmmaker, and AB 484 provides for a 6 percent refundable credit for the costs of productions made in California. These bills provide incentives for productions to remain in Southern California and help assure that the economy of our valley remains strong. In addition to implementing state programs, we must call upon Congress to assess the relevant trade issues with Canada in order to ascertain whether federal action is appropriate. The federal government may also be able to match Canada s tax credit or develop policies that would undermine Canada s efforts to steal American jobs from the Santa Clarita Valley.
Federal involvement is essential to combat the emergent economic threat.
If we are to continue building an economically competitive region, we must create an atmosphere conducive to profitable business. We have done this in the past, and we were rewarded with a lucrative industry that helped revitalize our city and our economy. Now, we are again at a crossroads to determine the future health of our valley. We can either let Canada systematically thieve us of our well-being, or we can fight for our jobs. The latter is the best option for our valley, and the State Legislature and Congress need to lead the way.