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Netflix_just_rolled_out_a-23308e111c03d9879747487ba767324cNetflix is planning on producing a whopping $6 billion in original content this year alone. It looks like the company’s home state of California will be the lucky recipient of a lot of that dough, as Netflix has announced that it’s increasing its infrastructure investment in the state.

Many other productions are produced outside of Hollywood, since many states offer lucrative tax incentives to lure shows into filming there. Netflix’s decision to ignore those potential tax benefits on much of its massive production budget is an interesting one.

Joe Chianese of production service company Entertainment Partners, said the following about the usual operating procedure for movie and TV show production regarding tax incentives:

“Incentives have become a key aspect of every production . . . Producers today, when they’re budgeting a movie, they do about six to sometimes 10 budgets based on different locations.”

The number of states offering incentives has declined of late, however, observes Chianese:

“Some states economically couldn’t afford to maintain their programs . . . Other states decided they wanted to allocate their funding to other places.”

[via Business Insider]

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