California approves $750m film tax boost
Hollywood's home state of California will more than double annual tax incentives for film and television production to $750 million under a measure passed by the Democratic-led legislature on Friday, Reuters reported.
The increase from the current $330 million was approved as part of a broader tax bill that is expected to be signed into law by Governor Gavin Newsom in the coming days.
Democrat Newsom had advocated for the boost, a step to help reverse a years-long exodus of production from California to places such as Britain, Canada and other US states that offer generous tax credits and rebates.
Producers, directors, actors and behind-the-scenes workers have warned lawmakers that Hollywood was at risk of becoming the next Detroit, the automaking capital devastated by overseas competition, if current trends continued.
Permitting data showed production in Los Angeles, the location of major studios including Walt Disney and Netflix, fell to the second-lowest level on record in 2024. California has lost more than 17,000 jobs since 2022 from its declining share of the entertainment industry, according to union estimates.
Producer Uri Singer said he shot three films in New York to take advantage of its tax incentives. He received a California tax credit to shoot his current project, a horror flick called Corporate Retreat, in Los Angeles.
"You can get such good cast and crew that are available that makes shooting in LA financially better," he said. "Besides that, creatively you find here anyone you want, and if you need another crane, within an hour you have a crane."
Plus, "the crew is happy because they go home every day," Singer added.
Industry supporters also are pushing for federal tax incentives to keep filming in the United States.
Republican President Donald Trump has offered a different way to address the issue. Trump said in May that he had authorised government agencies to impose a 100 per cent tariff on films produced overseas. The film tariff has not been implemented.
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Rogue states
The US-led west has created new forms and methods of exercising its hegemony over the rest of the world. The colonial history of the past two centuries is already filled with atrocities committed against the colonised in the name of a 'civilising' mission. In later times, and particularly since the decolonisation process following World War II, the US-led west has developed an extensive theoretical and ideological narrative to justify its so-called 'rules-based order'. The unanswered questions this gives rise to are 1) What rules? 2) Whose rules? 3) How, after delineating these 'rules', does the US-led west see fit to violate them in letter and spirit wherever its interests are involved, including, first and foremost, global hegemony? While the guns have fallen silent in the recent wars between Pakistan and India and Iran and Israel, with the US in tow to the latter, these conflagrations have given new life to the questions posed above. In the case of Pakistan and India, yes, we managed to get the better of India after it launched attacks across the international border, but our subsequent emphasis on dialogue between the two contending sides appears to be a fond hope at best, given Prime Minister Narendra Modi's embarrassment. The likelihood is that new forms of action will now replace India's open cross-border hostilities, including sabotage and covert actions. As far as the Iran-Israel-US conflagration goes, it is by now obvious to even the purblind that Israel is the settler colonialist cat's paw of the US-led west, supplied, armed and encouraged in its outrageous behaviour with its neighbours near and far and the Palestinians by its 'masters'. If this seems an oversimplification, one may concede that occasionally Israel jumps the gun or acts (has acted) in ways unpalatable to western interests, but these are lovers' quarrels soon settled. In the case of Iran, the ostensible aims of the Israeli and US attacks seem far from achieved. If Israeli Prime Minister Benjamin Netanyahu's thirty year bellicosity regarding Iran's transition to a nuclear weapons power ('any day now', repeated ad nauseam by this mischief maker) has led logically and inexorably to its 14-day barrage against Iran, capped by Trump's belligerent strikes on Iran's nuclear sites, neither has succeeded in the aims trotted out by both. Neither has Iran's nuclear capability been irreparably harmed, nor has the much desired in Washington and Tel Aviv regime change in Tehran occurred. On the contrary, Iran has safeguarded its 60 percent enriched uranium and the Iranian people, even those not well disposed towards the mullah regime in Tehran, have rallied in defence of their country. In other words, the Israeli-US assault on Iran has proved an utter failure. Israel, on the other hand, has for perhaps the first time, received a small dose of what it has been dishing out with gay abandon to the hapless, defenceless Palestinians and their dwindling number of sympathisers in Lebanon and Yemen. It is perhaps too soon to speculate, but Israel's much vaunted impenetrability has certainly been dented, even if not completely demolished. This is bound to have some impact on new emigration into Israel, if not an outflux of fearful Israelis to safer climes. But the bitter fact has now, in the light of what has transpired since October 2023, to be frankly acknowledged that the hopes of Hamas in attacking Israel in an unprecedented manner and capturing hostages to bargain with have been dashed. It appeared that Hamas was attempting to nullify the growing ranks of Arab countries succumbing to the 'temptation' of joining the ranks of their brother countries in signing onto the so-called Abraham Accords floated by Trump in his first term. 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