California film tax credit helping keep Hollywood at home

Warner Brothers and Sony Pictures' Screen Gems have been the most aggressive studios in taking advantage of California's new film tax credit aimed at keeping production from leaving Hollywood's backyard.

The California Film Commission has approved more than $20 million in state film tax credits for Warner Bros. films expected to shoot in L.A. this year. California's film tax credit program offers producers of films costing up to $75 million a tax credit of 20% of qualified production expenses. The program, which is capped at $100 million a year, allows companies to apply their credit against whatever income and/or sales and use taxes they owe the state.