Hollywood's Big Budget Film Exodus Cost California $9.6 Billion in Economic Activity

California's film and television tax credits generated $4.3 billion in economic activity and bolstered 22,300 jobs, according to a study released by the Southern California Association of Governments.

But an exodus of films with massive budgets to production hotspots such as the United Kingdom and Canada that offer more generous subsidies was acutely felt in the Golden State. It cost California an estimated $410 million in state and local tax revenues. It also meant sacrificing 47,600 jobs and $9.6 billion in economic output, the study's author’s claim.

“You cannot look at this program and not see it as a formidable economic and fiscal benefit,” Hasan Ikhrata, SCAG Executive Director, said in a statement. “California is very much at risk of losing its film industry, and without this program the past five years, the losses would have been even more painful.”