Beverly Press Park Labrea News: Expanded film tax credits see action in Legislature

The sweeping bill that would increase California film and television tax credits from $330 million to $750 million has been advanced by the Arts, Entertainment, Sports and Tourism Committee in the state assembly and the Revenue and Tax Committee in the state senate.

“It was referred to two committees in the assembly,” Assemblyman Rick Chavez Zbur (D-Los Angeles) said. “The bill needs to get out of all those committees. I’m relatively optimistic that it will make it through all of them. I think we’re building strong support for this bill, although, you know, we still need to convince legislators, primarily in other parts of the state, that this is a good thing for the state of California.”

Identical bills were introduced in both California chambers, and Zbur said that he anticipates they will be combined once they receive final approval for a vote.

Stay in LA, a grassroots organization that has rallied the state and local Los Angeles officials to incentivize film and television production, celebrated the move.

“If this works, the story will no longer be that California’s film industry is headed for the same fate as Detroit’s former auto industry, a decades-long decline that just hit its breaking point. The new story will be of California rising from the ashes, a triumphant and vibrant return to leading the world in entertainment again,” director and Stay in LA member Aaron Moorehead said. “Everyone in California will finally see the same economic benefits that have been reaped by Budapest, London, Vancouver … the economic boom from bringing production back to California will be felt by film industry workers, local business owners, taxpayers and all Californians.”

“California is way behind the curve in incentivizing producers to work here in the state that invented the movies,” unit production manager and Stay in LA member Greg Bartlett said. “The old saying is that 50% of the movies made in the world were made here, but now not even 50% of the movies made in the U.S. are made here. These bills are a huge step in the right direction. The incentives go to the producers, but the jobs go to Californians. That fuels our economy from supporting California families and film related businesses to restaurants, dry cleaners and hotels to bolstering the tax base for the cities and state coffers. The money spent comes back to the state. The best and most experienced crews, rental houses and stages are here in California and we are a coalition of these interests.”

Zbur highlighted how Stay in LA and industry professionals had helped move the needle on the legislation.

“Real people telling their own stories to legislators and coming out in such large numbers, I think, is helping people understand that this is not just a normal time for the industry. This is not a corporate giveaway. This is a jobs bill,” Zbur said.

On April 15, Rep. Laura Friedman (D-Glendale) visited Television City in the Fairfax District and toured the facility with representatives of Hackman Capital Partners. Friedman used the tour, where she learned about Hackman’s plans to modernize the facility, as an opportunity to promote expanded production in L.A.

“I started out in Los Angeles as a film producer, and I know so many other people have come to Los Angeles with the dream of supporting their families by working in the film and television industry,” she said. “I still believe that dream is obtainable, and I’m committed to making sure that it stays true for all. Directors, actors, producers and everyone that works in the film industry want to stay in Los Angeles, and I want to work with them and our hardworking families and union members towards that shared goal.”

Senior vice president of Television City Zach Sokoloff said the modernization project aims to revitalize the entertainment industry in the city.

“Congressmember Friedman’s career in public service is predated by a career in the entertainment industry. She understands the challenges we face and has been a champion of this important industry since her time in the statehouse,” Sokoloff said. “We need leaders at all levels of government to do everything they can to keep Hollywood in Hollywood, which will support the hundreds of thousands of Angelenos whose livelihood depends on production staying in California.”

If the bills are approved, Gov. Gavin Newsom’s signature would be almost guaranteed. It was Newsom who announced the $750 million tax credit plan in October 2024.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Newsom said at the time. “Expanding this program will help keep production here at home, generate thousands of good-paying jobs and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

“This is our homegrown industry. It’s an industry that is iconic to the state, and it defines California and our identity. And in addition to literally hundreds of thousands of jobs that this produces and the over $26 billion that it contributes to our economy in the state, it also results in spin-off economic benefits and cultural benefits for the state that’s almost impossible to measure,” Zbur said.