California legislators voted to approve a major expansion of the state tax credit for film and televised production, which was a key priority for Governor Gavin Newsom.
The legislator voted on Friday to increase the ceiling of the program by $ 330 million per year to $ 750 million. The Assembly approved a budget trailer bill during a vote of 64-1, while the Senate adopted it 31-3.
The management of the two houses agreed to increase as part of a budget agreement of $ 321 billion which was finalized on Tuesday.
The expansion follows months of lobbying entertainment unions and the Motion Picture Association, which argued that it was necessary to remain competitive with other states. Rebecca Rhine, the president of entertainment Union Coalition, made several lobbying trips to Sacramento and said that 250,000 letters had been sent to the legislators.
“The activism of our members was the main engine of our fight to keep and bring good jobs from industry to our state,” she said in a statement, thanking Newsom and the legislators for their support. “We call on studios to revise communities and state workers who have built this industry and built their businesses.”
In an interview, Rhine noted that support was particularly significant during a difficult budgetary year, because legislators had to close a deficit of $ 12 billion. Although Newsom has promised the expansion of $ 750 million last October, the testimony of crew members outside the work helped overcome the line.
“There is nothing more powerful than someone who loves what he does, wants to work where they live and have given their whole professional life to a career in which he is incredibly qualified,” said Rhine, who is a senior official of Directors Guild of America. “These pleadings moved and were heard. What it shows is that the government can do things for workers and can help support and protect the middle class. ”
new York increase Its tax incentive for film production and television at 800 million dollars last month, while the tax incentive of Georgia is not ceiling.
The increase comes in response to a global slowdown in the wake of Peak TV. Production jobs fell 29% in California between 2022 and 2024. Jobs decreased by 30% in Georgia during the same period and dropped by 17% in New York, according to the Bureau of Labor Statistics.
Although the increase in tax credit should create a few thousand production jobs, many complained that it was too little, too late. Some maintain that a federal tax incentive will be necessary to compete in terms of level with the United Kingdom, Canada and other countries.
A separate bill, AB 1138, will open the program to animation and sitcoms, and increase the basic credit by 20% to 35% of eligible expenses. This bill should be approved next Thursday.
The California Production Coalition, a group of owners of sound stands and accessory houses in partnership with the MPA, also applauded the vote.
“We are delighted with the expansion of financing adopted today by the state legislature, a key element of California to regain its place in the landscape of film production and television,” a spokesperson for the coalition said in a statement. “However, it is essential to combine this economic investment with the necessary programmatic improvements. We congratulate the continuous efforts of our elected officials in Sacramento and look forward to improving the program in the coming week.”
