As film and television production continues to lag behind pre-strike levels and more shoots leave California for tax-friendly states like Georgia or even overseas, Gavin Newsom and Karen Bass have unveiled a plan intended to stop some of the bleeding.
The California governor and Los Angeles mayor appeared together at Raleigh Studios in Hollywood on Sunday to announce a proposal that would more than double California’s tax credit incentives for film production, bringing the state’s total up to $750 million annually from its current level of $330 million.
Newsom called the state of film production in California a “legitimate crisis” and said that he had “a state of mind to address this issue a little more forcefully.”
“We needed to make a statement and we needed to do something that was meaningful, not just intentional,” Newsom said. “So we put this new marker out, $750 million.”
Bass also spoke about the importance of bringing productions back to Los Angeles, saying that the industry directly employs “tens of thousands of Angelenos,” and countless more small business owners rely on its economic impact. She thanked Newsom for “finally, hopefully making us competitive with New York and Georgia.”
“One message we want to send from the Mayor’s Office is ‘we have your back,’” Bass said, before explaining that the state’s economic support can be paired with local logistical assistance from her newly formed entertainment task force. “We established the Entertainment Industry Council to draw on the expertise of industry leaders to act on reversing the trend of us losing our industry and to keep production local.”
While the proposal is still subject to legislative approval in the state’s 2025-2026 budget, it would mark the first major update to California’s film tax credits since 2014, when the state legislature tripled its annual allocation for film productions.
The increase in the amount of available tax credits is the only change to the current system. Feature films and TV pilots with budgets of $1 million or more are eligible to apply for the credits, as are existing TV series with budgets of at least $1 million per episode that relocate to California. The state recently announced the latest slate of projects that will receive tax credits in 2025, which include the pilot for “Suits: L.A.” and the Matt Damon and Ben Affleck-produced Hulk Hogan drama “Killing Gawker.”
However, the $750 million cap would still put California behind states like Georgia, which does not limit the amount of taxpayer money that can be returned to productions as tax credits.
“I don’t know how long they’ll be able to afford that program,” Newsom said of Georgia. “We’ll see how long that lasts down in Georgia.”
The governor went on to claim that a more competitive California tax credit should make it easier for politically progressive filmmakers to boycott filming in Georgia for political reasons.
“Compare the values of this state, with how it relates to workers’ and women’s rights, civil rights, LGBTQ rights, voting rights down in the state of Georgia,” Newsom said. “I think it’s a pretty damn easy decision for those who make those decisions. If you believe in those values, I hope you can express them by moving your feet. Not just praying, not just talking about them, but actually coming back to the state of California.”
The announcement couldn’t have come soon enough for film industry workers and small business owners in Los Angeles who have been hurting for work. FilmLA recently reported that Summer 2024 had the second lowest number of film, TV, and commercial shoot dates of any summer on record. Production was even slower this summer than in 2023, when Writers Guild of America and Screen Actors Guild strikes brought the majority of scripted production to a halt. In addition to larger industry contractions, Los Angeles has been particularly hurt by unscripted and reality TV productions moving to other states, with shoot dates in that sector declining by 56.3 percent in Q3.
SOURCE: IndieWire
