California’s current 20% credit for film and TV producers urgently needed increasing as other states and countries continued to take TV and film production away from California. For years, some places offered tax incentives up to 40%. Now Governor Gavin Newsom has now done something to bring production back in a serious way. He had been pushing Senate Bill 630 but it was no where near enough. The new changes raise the annual cap on tax credits from $330 million to $750 million dollars. This amendment to that bill will offer California a 35% credit on in-state production costs with the possibly of a 5% incentive to shoot outside the city of Los Angeles anywhere else in California. Currently California offers 20%.
Senate Bill 630 and Assembly Bill 1138 are the new focus on job creation as California that now diversify the types of productions that qualify for California’s Film and Television Tax Credit program. The laws expand the types of productions that are eligible for the incentives and include game shows, animation, reality, and unscripted. All were exempt before. It’s been two years of a big decline in production for Hollywood causing a very sad state for workers.
The bills are called SB 630 and AB 1138. The goal to help movie and TV making come home to Hollywood ever since Covid, LA wildfires and tax incentives that were better than California elsewhere – so overdue but wonderful news.
Photo credit: The Hollywood Reporter
