Karen Bass Plugs Hike in Film Tax Credit: ‘Let's Bring Hollywood Back'
L.A. Mayor Karen Bass included a plug for the expansion of the film and TV tax credit in her State of the City speech on Monday, saying it is time to 'bring Hollywood back.'
Bass spent most of the speech addressing the city's dire fiscal situation, homelessness, and the work of recovering from the Palisades Fire. But toward the end, she renewed her call for California lawmakers to triple the $330 million state subsidy for the film industry.
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'We have to win back our entertainment jobs,' Bass said in the City Council chambers, calling Hollywood 'our foundational industry.'
Gov. Gavin Newsom has proposed hiking the tax incentive to $750 million starting in July.
Two bills, SB 600 and AB 1138, are pending in the Legislature to effectuate that increase, while also expanding the base credit from 20% to 35% of qualified production costs. The bills would also expand the incentive program to include sitcoms, animation and large-scale competition shows.
Hearings are due to be held on Tuesday and Wednesday in the Capitol on those bills. Industry labor unions have urged their members to email lawmakers to show their support. The California Production Coalition — an alliance of prop houses and soundstage owners under the guidance of the Motion Picture Association — has also urged support for the expansion.
In her speech, Bass said the city will also 'do our part,' by making it cheaper to film on city property and streamlining the permitting process.
After the speech, Bass' office released a budget proposal that includes 1,647 layoffs — which it called 'a decision of last resort.'
Bass also said she would travel to Sacramento this week to advocate for more money for the city and to seek help with spiraling liability costs. The city faces a nearly $1 billion shortfall, as revenues have consistently fallen below expectations. Newsom previously signed a $2.5 billion authorization to help Los Angeles County recover from the fires in January.
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