Beverly Press Park Labrea News: State film and TV tax credits could rise to $1 billion

Gov. Gavin Newsom proposed expanding the state’s Film and Television Tax Credit Program on Nov. 2 from $750 million to at least $1 billion, which would make it the nation’s largest film and TV tax credit.

The plan includes credits for above-the-line talent, $100 million for independent productions, rewards for companies that commit to more than one production in California and an extension of the tax credit through 2040.

“California created the modern entertainment industry. We’re the capital of entertainment and we’re going to keep it here,” Newsom said. “At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry. But states can’t shoulder the cost alone, which is why I am calling on Congress to back up an expanded tax credit by passing national film and TV tax credit legislation already on the table.”

The California Legislature would be required to approve an increase of the tax credits to $1 billion. Assemblyman Rick Chavez Zbur (D-Hollywood) said increasing the state Film and Television Tax Credit Program will make a significant impact.

“I’m grateful to Gov. Newsom for his unwavering commitment to the workers and small businesses that are the backbone of California’s iconic film and television industry,” Zbur said. “Our work last year to expand California’s Film and Television Tax Credit Program to $750 million annually and modernize the program is delivering results, bringing back tens of thousands of jobs in its first year. While we’ve made tremendous progress, we must continue building on that momentum to ensure California remains the film and television capital of the world. This is about protecting the future of an industry that has helped define California for generations and ensuring the next generation of creative workers and small business owners can raise their families right here at home.”

U.S. Rep. Laura Friedman (D-Burbank) said increasing the California tax credit is an important step in the larger effort to further incentivize local TV and film production, and she is focused on getting a federal film and television tax credit bill passed.

“Gov. Newsom’s proposal will help bring more production jobs back to California, and it can be stacked on top of the bipartisan national film tax credit I’m pushing in Congress to further jumpstart our local economy,” Friedman said. “I’m continuing to work day and night to get our bill passed so we can get this signature American industry back where it belongs, in America.”

The federal Motion Picture, Television, and Entertainment Revitalization Act has bipartisan support, and lawmakers are hopeful it will be passed before the end of the year.