In an attempt to raise the rate of entertainment production in California, and particularly in the Los Angeles area, Governor Gavin Newsom proposed expanding the tax credit for the film and television industry.
The expansion of the programwhich began in 2009 with the aim of encouraging film production and television programs in California, would double the tax credit, from $330 million to $750 million.
The renewed program could come into force from June 2025pending approval by the California Legislature.
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“It is about invest in the future of this industry“, declared the governor of California this Sunday during a press conference.
Over recent years, film and television production has slowed in California, due in large part to the 2020 COVID pandemic and to the recent strikes by Hollywood actors and screenwriters.
Productions look for other places
Lately, many studios and filmmakers have chosen work in states like New York or Georgia instead of Californiawhich is considered the “entertainment capital of the world.”
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In the particular case of Georgiathis state there is no limit for the tax credit for film productions.
“California is the world entertainment capitalwith its roots in decades of creativity, innovation and unparalleled talent,” Newsom said in a statement.
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“Expand this program will help maintain production in the countrygenerate thousands of well-paying jobs and strengthen the vital link between our communities and the state’s iconic film and television industry,” added the governor.
Gavin Newsom hopes his proposal is approved by the state Legislature.Credit: Eric Thayer | AP
OK with a FilmLA studio released at the beginning of October, Production fell 5% during the third quarter of 2024 compared to the same period in 2023. The governor described the notable drop in production as a crisis.
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According to the study, the film office of the city and County of Los Angeles, as well as other local jurisdictions, the five-year average of local film production showed a 48% decline.
Respalda Bass a Newsom
Together with Newsom, at this Sunday’s press conference at the Raleigh Studios in Hollywood The mayor of Los Angeles, Karen Bass, was also present.who agreed with the governor that the decline in production is a problem that needs to be resolved.
“Hollywood is the cornerstone of this city and our economy, and Our message to the industry today is clear: we have your back“said the mayor.
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Bass said that when he was speaker of the California State Assembly, he worked to support leaders, such as current Councilman Paul Krekorian, with the purpose of creating the tax credit for film productions.
“Even though the economy was in a tough spot, we knew the industry needed support, and if we could at least get the program started, then we could grow it. Today I am proud to support Governor Newsom and industry leaders to continue with this important work to support this traditional industry“Bass said.
The mayor of Los Angeles also noted that the loss of production not only hurts the local entertainment industry, but also May jeopardize jobs in other supporting industriessuch as restaurants, construction companies and flower shops.
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