Monday 8 August 2022

Likely Extension of Film and Television Tax Credits in California

California Governor Newsom is backing extending tax credits for films and television shows in California.  Governor Newsom is touting California’s commitment to reproductive rights as the attraction (in addition to the credits) for businesses to operate in California.  The press release states, in part:

SACRAMENTO – Together with Senator Anthony Portantino (D-La Cañada Flintridge) and the California Film Commission, Governor Gavin Newsom today announced his support for SB 485, which would invest $1.65 billion in the state’s Film & Television Tax Credit Program to extend it for an additional five years, through 2030. This program allocates $330 million per year in tax credits for the industry.
This announcement comes as hundreds of showrunners demand that production companies implement protocols to protect pregnant employees in states where abortion is outlawed.
“As other states roll back people’s rights, California will continue to protect fundamental freedoms for all and welcome businesses that stand up for their employees,” said Governor Newsom. “Extending this program will help ensure California’s world-renowned entertainment industry continues to drive economic growth with good jobs and a diverse, inclusive workforce.”
The state’s Film & Television Tax Credit Program has been shown to generate $24 in economic activity for every $1 invested – spurring tens of billions of dollars in economic output, helping create over 110,000 jobs, and bringing shows and films to California. Extending the Film & Television Tax Credit Program will help the state’s ongoing efforts to retain its status as the world’s film and TV production capital, a status long earned due to its superior crews, talent, infrastructure, weather, locations, and a host of other attributes that lead to business and creative success.
In response to today’s announcement by Governor Newsom, California Film Commission Executive Director Colleen Bell stated that the Commission stands ready to help all projects – including those that reject states where fundamental rights are under assault – make the most of all that California has to offer.  
“The Governor’s actions today speak to the values held by so many people across the film and TV production industry,” she said. “More than ever, California offers the best value and the best values.” 
Bell also noted that the creative community has unique influence and therefore, unique responsibility. “Working in and supporting a state that violates basic freedoms is antithetical to the industry’s core values,” she added. “It’s also bad business.” 
“California is the entertainment capital of the world and it is exciting and appropriate for the state to invest in keeping and expanding its impact. The economic benefit from extending the Film and Television Tax Credit Program creates thousands of jobs for talented crafts people and generates significant revenue for our budget. I am grateful to Governor Newsom for his unwavering support and leadership for enhancing this historic industry – which is unique to California. Talent and industry need certainty to compete with other states and the tax credit program extension does just that,” said Senator Anthony Portantino, author of SB 485.

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