More feature films and commercials were shot in Hollywood this year than in 2008, according to L.A. Film Inc., with some hoping that a new state tax incentive program will lure more productions to California.

L.A. Film Inc., an organization which aids production companies in obtaining filming permits from the city and county of Los Angeles, reports that there was a 16 percent increase in movie production and 19 percent in commercials between Jan. 1, 2009 and Dec. 6, 2009 in comparison to the same time period last year.

However, there was a nine percent dip in television show production.

After combining all the different kinds of productions, there were 6,524 production days in Hollywood versus last year’s 6,209.

These new statistics come amidst considerable hand-wringing by local officials who have been alarmed by an ongoing trend of productions moving out of state, drawn by generous tax credits to other areas of the United States.

But Philip Sokoloski, communications manager for LA. Film Inc., told The Independent that he has an idea why Hollywood has been holding steady.

“There’s something about Hollywood that attracts producers,” he said. “It’s the right mix of locations for the film or the film-friendliness of the area.”

The decline in Calfornia-based productions is not a new phenomenon. It is often traced back about a decade, when production teams began leaving for other parts of the United States where movie-making is cheaper, eventually leading to the creation of the term “runaway production.”

In February, the state legislature approved the California Film and Television Tax Credit Program, a $500 million bundle of incentives intended to bring filming back to the state and serve as an answer to the 40 other states in the union that offer more lucrative tax incentives.

According to the California Film Commission, feature films with a minimum budget of $1 million and a maximum of $75 million will be eligible for a 20 percent tax credit.

Any TV show that originally began production in another state and relocates to California will receive a 25 percent tax credit.

That percentage is also promised for independent movies with a maximum budget of $10 million.

The funds will be doled out over a five-year period beginning on Jan. 1, 2011, but already 50 projects have been approved for the program, some of which have had scenes shot in Hollywood.

According to LA. Film Inc., the new TNT drama “Men of a Certain Age” and “Beginners,” a film starring Ewan McGregor, have done filming in Hollywood.
But some critics say the minimum budget to qualify is too high.

Amy Lemisch, director of the California Film Commission, which is located in Hollywood, answers back with a specific reason why those requirements were established.

“We are not as generous as other states, which is a good thing,” she said. “We get more value, we get a bigger return in our investments than these other states are getting.”

Hollywood Chamber of Commerce President Leron Gubler believes the program is a good idea, but is not sure if it will be enough.

He said the state should look into extending the program for a longer period of time.

“It’s just a question of whether it can be expanded,” he said, adding: “We’ve got to be able to show jobs and revenues in this state.”

Lemisch agrees that the tax incentive program will most likely require expansion, pointing to how the movie business has changed for good in Los Angeles.

“It’s never going to be the same again, you can’t go back to the old business model,” she said. “The model has changed, productions have changed. … We are going to be able to compete.”

Gubler said film, television and commercial productions have always been a “huge economic engine” for Hollywood, generating customers for a countless number of local businesses.

That’s why he’s glad something is being done to help curb runaway production.

Said Gubler: “When the entertainment industry sneezes, everyone [in Hollywood] catches a cold.”