California acts to keep film and TV production local with $750m tax credit | California
California’s original state in Hollywood will be more than double the annual tax incentives for film and television production at $ 750 million under a measure adopted by the Legislative Assembly led by Democrats on Friday.
The increase compared to the current $ 330 million has been approved as part of a broader tax bill which is expected to be promulgated by the Governor of California, Gavin Newsom.
Newsom pleaded for Boost, a step to help reverse an exodus of California production in places such as Great Britain, Canada and other American states that offer generous tax credits and discounts.
The producers, directors, actors and crew members warned the legislators that Hollywood was likely to become the next Strait, the former starting capital devastated by competition abroad.
Authorization of data has shown that production in Los Angeles, the location of major studios, including Walt Disney and Netflix, fell to the second lowest level ever recorded in 2024. California has lost more than 17,000 jobs since 2022 because of its decrease in the entertainment industry, according to union estimates.
Producer Uri Singer said he had shot three films in New York to take advantage of his tax incentives. He received a tax credit in California to shoot his current project, a horror film called Corporate Retreat, in Los Angeles.
“You can get such good players and teams that are available that make you financially filming in Los Angeles,” he said. “In addition to that, you find here in a creative way anyone you want, and if you need another crane, within the hour, you have a crane.”
In addition, “the crew is happy because they come home every day,” added Singer.
“The Coalition of the Entertainment Union applauds today’s announcement,” said Rebecca Rhine, president of a coalition of unions and guilds who represent writers, musicians, directors and other cinema professionals, in a statement. “The expansion of the financing of our program is an important reminder of the strength and resilience of our members, the power of our coalition with a large union and guild, and the role that our industry plays to support the economy of our state.”
“It is now time to bring people back to work and bring production home to California,” added Rhine. “We call on studios to revise communities and state workers who have built this industry and built their businesses.”
Local defenders applauded the expansion of tax incentives by California, although they have said that more must be done.
The writer Alexandra Pechman, organizer of a residence campaign at the Hollywood workers, called traditional studios and by expanding internet platforms to engage in a specific quantity of spending in California to support creative workers.
“It is time for studios and banners to do their part to transform this victory into real change for all of us,” said Pechman.
Industry supporters also put pressure on federal tax incentives to continue to film in the United States.
Donald Trump said in May that he authorized government agencies to impose a 100% price on films produced abroad. The film’s price has not been implemented.
