Hollywood's Half Loaf: The Tax Credit Conundrum California lawmakers are on the verge of a deal that would temporarily ease some of the pressure on film producers struggling to monetize their production tax credits under the state's new $5 million annual cap.
While this compromise may seem like a victory for the entertainment industry, it is hard not to view it as a half hearted attempt at resolving the issue.
The entertainment industry had been pushing for a full exemption from the cap, which was imposed in June as part of the state budget.