Latest news with #AB1138
Yahoo
4 hours ago
- Business
- Yahoo
Hollywood Incentives Bill Passes the CA State Assembly Without $750 Million Specified, For Now
A bill set to dramatically expand California's incentives for film and television production companies to shoot in-state has passed the California State Assembly, albeit without a mention of the $750 million program cap promised by Gov. Gavin Newsom. Legislators voted 73 to one on Tuesday to pass AB 1138 and send it to the Senate, with Assemblymember Carl DeMaio of San Diego representing the sole 'no' vote. The vote comes after the state Senate passed a similar bill focused on the state's entertainment tax credit program earlier in the day, with the governor's promised cash infusion absent from the amended legislation. More from The Hollywood Reporter Where Did the $750 Million Go? Hollywood Incentive Bill Passes CA Senate Without Newsom's Pledge The 13 Commandments of Being a Background Actor After Strike Threat, Video Game Workers and Microsoft-Owned ZeniMax Media Reach Tentative Agreement The move adds momentum to union- and studio-backed attempts to provide a shot in the arm to filming in California even as the state faces significant budget deficit concerns. Newsom has pledged support to one of California's signature industries even while existing or proposed state services are likely to be cut or pulled back as a result of the budget situation. That's necessary, argued the bill's advocates on Tuesday. 'California's iconic film and television industry is in crisis,' said bill co-author Assemblymember Rick Zbur, who represents an area in L.A. stretching from Hollywood to Santa Monica, before the vote. 'The hardworking men and women and the small businesses that have built an industry that is intrinsic to California's identity are experiencing depression-level-eras of unemployment and loss of business as our iconic business is being lured away to other states and other countries with better credit programs.' Other champions of the bill, like Assemblymember Tom Lackey, Assemblymember Mike Gibson and Assemblymember Sharon Quirk-Silva, emphasized that the proposed legislation was a jobs bill, not a handout to Hollywood. 'What's happened is we got a little arrogant on this film situation and we thought we're all that and a bag of chips, and you know what, the other states decided they would compete with us,' said Lackey, who represents the High Desert. 'And not only that they would compete with us, but they would take this industry.' He said the legislation wouldn't save Hollywood, but it was an important step to make California more competitive with regard to incentives programs in other states and countries. But the bill's one critic in Tuesday's session, DeMaio, disagreed, framing the proposed legislation as an ineffective solution that essentially sought to reward influential political allies in Hollywood. 'We should make California prosperous for all and it's not by giving out the gifts of tax credits to those that have influence, those that might make the best case to the politicians in Sacramento but rather policies that will flatten the cost curve,' he said. DeMaio singled out California's heavily unionized Hollywood workforce and regulations as the reasons why productions fled the state, not the tax credit. 'Nothing in this bill deals with labor costs, nothing deals with the regulatory burden,' he said. DeMaio added that the bill is only attempting to 'soften the blow of some of those bad policies.' The amended bill removes mention of Newsom's pledge to increase the film and television incentives cap from $330 million to $750 million annually, as did its companion bill in the state Senate. Advocates say that figure doesn't need to be in the bills as long as Newsom's budget is passed. The $750 million figure survived in Newsom's revised budget, unveiled in May, even as providing Medi-Cal benefits to undocumented immigrants and Medi-Cal coverage for weight-loss drugs like Ozempic did not. The amended bill also expands the tax credit's program for training workers from historically underrepresented communities to work in the film and television business by opening up the program to additional nonprofits. In a sign that none of this is a done deal and the situation remains fluid, industry unions and the grassroots group Stay in L.A. have encouraged their members to continue writing to and calling their state representatives to support the bills. 'This is one of the many steps we have ahead of us, a coalition of entertainment unions told members after the Assembly and Senate bills passed on Tuesday. Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
Yahoo
23-05-2025
- Business
- Yahoo
California Film Credit Expansion in Flux as Lawmakers Delete References to $750 Million
The expansion of the California film and TV tax credit, which industry stakeholders argue is key to protecting jobs in the state, hit a snag on Friday, as lawmakers deleted references in bill language to raising the program cap to $750 million. Gov. Gavin Newsom vowed last fall to increase the program from $330 million to $750 million. Two bills, AB 1138 and SB 630, have been working their way through the legislative process to enact that increase and other changes to make the program more attractive to producers. More from Variety California Gov. Gavin Newsom Proposes $7.5 Billion Federal Film Incentive After Trump Floats Tariffs Trump Plans to Meet With Film Industry to Discuss Tariffs: 'I Want to Make Sure They're Happy' and 'I'm Not Looking to Hurt' Them Animation Guild Seeks Enhanced California Subsidy to Combat Outsourcing On Friday, the bills passed through the appropriations committees in the Assembly and Senate, but the references to $750 million were removed. That dollar figure could be added back in later in the budget process, but for now it is not guaranteed. 'We're certainly disappointed in this direction, and it's something we are going to push back against as budget negotiations begin to heat up,' said Sen. Ben Allen, who authored the Senate version of the bill. 'We have been watching the decline of this critical industry in real time over recent years, and we cannot continue to sit on the sidelines. This program needs to be modernized if we want to retain California as the global hub of entertainment.' The removal of the dollar figure could turn out to be a hiccup in the process. Industry supporters have been confident that the expansion will be approved. The changes were made as the committees voted on hundreds of bills, which must be passed out of the 'suspense file' to make it to the floor. Newsom affirmed support for the $750 million increase just last week, after issuing a revised budget proposal to the Legislature. 'We need to step things up,' he said. The Legislature must pass a budget by June 15, though some funding items may be addressed later than that through trailer bills. Dozens of entertainment union representatives have attended a series of hearings in Sacramento this spring to push for the expansion. In testimony before Assembly and Senate committees, they have argued that the state must do more to compete with attractive incentive programs in other states and abroad. As currently written, the legislation would increase the amount of the tax credit from 20% of qualified expenses to 35%. That would increase to 40% for productions outside of the Los Angeles area, or in economically depressed areas of Los Angeles. The program would also expand to include animated films and TV shows, sitcoms and large-scale competition shows. Additional amendments are expected to add eligibility for music scoring. Best of Variety New Movies Out Now in Theaters: What to See This Week Emmy Predictions: Talk/Scripted Variety Series - The Variety Categories Are Still a Mess; Netflix, Dropout, and 'Hot Ones' Stir Up Buzz Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival
Yahoo
02-05-2025
- Entertainment
- Yahoo
California Production Workers Increase Pressure On State Lawmakers To Support Expanded Film & TV Tax Credit Proposal
EXCLUSIVE: Production workers in California seem pretty determined to make sure that lawmakers grasp the necessity for a revamp of the state's Film & Tax Credit Program. In the 11 days since Deadline first reported that workers had sent more than 100,000 letters in support of SB630 and AB1138 to Sacramento amid some key hearings on the bills, that number has now doubled, we've confirmed. The goal is to show the Legislature just how dire the situation is and how many Californians have been harmed by runaway production in the last decade. More from Deadline WGA East Decries Polygon's Sale To Valnet & Fifth Round Of Layoffs Since November As "Self-Defeating" & "Short-Sighted" Jon Voight Has A Plan To Save Hollywood: Will Trump Or Anyone Else Care? Writers Guild Of America West Staff Union Wins Voluntarily Recognition, Moves To Negotiate First Contract That's in addition to the dozens of people who have shown up to every committee hearing on the matter to voice in-person support. 'I think the letters, the attendance at the hearing, all of this is really an indicator of both the level of angst and the level of commitment [from workers],' Rebecca Rhine, Entertainment Union Coalition President and Directors Guild of America Western Executive Director, told Deadline. So far, things are running relatively smoothly as these sister bills make their way to the Senate and Assembly floors. AB1138 did, finally, receive one no vote from Assemblymember Carl DeMaio in its Revenue and Taxation Committee Hearing on Monday. Sources tell us this was fairly expected, given DeMaio is a more Conservative member of the Legislature and doesn't indicate massive roadblocks ahead. The letter initiative has been led by the Entertainment Union Coalition as part of its Keep California Rolling campaign, which has been lobbying for the passage of SB630 and AB1138. There are still many hurdles ahead for the bills, which would not only allocate $750M annually in tax incentives for production in the state but also redefine and broaden eligibility for the program. As of now, none seem too high. We also hear that this initiative is very high on Gov. Gavin Newsom's priority list, and he's determined to get approval, at least for the funding expansion. On May 5, the Senate Appropriations Committee will hold a hearing on SB630. The topic of reviving domestic film and television production has been heating up for some time. While California has been leading the charge, it may now also become a topic of discussion on the federal level. Deadline reported Friday that Jon Voight, one of Trump's three 'special ambassador' to Hollywood picks, will soon present a plan to the President about a federal tax incentive. Best of Deadline Brad Pitt's Apple 'F1' Movie: Everything We Know So Far Everything We Know About 'Nine Perfect Strangers' Season 2 So Far 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More
Yahoo
02-05-2025
- Business
- Yahoo
Animation Guild Seeks Enhanced California Subsidy to Combat Outsourcing
Seeking to combat the longstanding flow of animation jobs to Canada and other locations, the Animation Guild issued a report on Thursday urging California to improve its tax incentive program. California's $330 million tax incentive is limited, for now, to live-action films and TV shows. Two bills, SB 630 and AB 1138, would expand the program to $750 million and would include animation for the first time. More from Variety Film Workers to Rally Sunday in Support of Doubling California Tax Incentive: 'There's Been No Work' California Lawmakers Move to Hike Film Credit to 35% for L.A. Shoots, Include Animation and Sitcoms Untitled Daniels Film, 'Community' Movie, 'Cut Off' Secure California Production Tax Credits The guild report, prepared by CVL Economics, argues that would not be enough. 'The state is now decades behind the aggressive policy strategies implemented by global competitors, and the erosion of in-state production has had a profound impact on its once-thriving animation talent pipeline,' the report states. As an example, the guild points to 'Moana 2.' The original film was produced in Burbank, but much of the sequel was made at Disney's facility in Vancouver. The union argues that decision cost California 338 jobs, plus another 479 jobs when indirect effects are taken into account. Outsourcing has long been a source of contention between the studios and the guild, and led to two strikes in 1979 and 1982. In negotiations last year, the guild proposed eliminating the outsourcing clause in the contract, but the Alliance of Motion Picture and Television Producers rejected the idea. Jeanette Moreno King, the president of the Animation Guild, said that while animation work has been sent overseas for a long time, studios have begun to ship many other tasks abroad as well, including storyboarding and directing. 'Now they are sending out entire productions,' she said. 'They've expanded what they send out. Some shows are completely not made here.' King has been involved in lobbying on the bills to expand the tax incentive program. She said that while the current bills include animation, many children's TV shows wouldn't be eligible because they don't meet the thresholds for budget and episode length. 'It's a win just to get it in there at all,' she said, adding that it's probably too late in the legislative process to do anything about the thresholds. The CVL report also notes that visual effects work has been poached by Canada for decades, with post-production hubs established in Montreal and Vancouver, while other hubs have also taken root in London and Seoul. The guild argues those jobs deserve consideration because they are at the cutting edge of technology. 'If California wants to maintain its leadership in entertainment, the state cannot only simply protectlegacy production models — it must invest in the future of the industry,' the report argues. 'Rebuilding a robust cluster of animation talent is not about nostalgia; it's about talent competitiveness.' The current California tax incentive program includes a 5% bonus for live-action productions that spend at least 75% of their VFX budget in California. The report argues that is not competitive with VFX incentives in British Columbia and other places. Some productions use the California tax incentive for principal photography and then complete their VFX work elsewhere. The report argues that VFX work should be excluded from the state's $100 million per-project cap, which would provide a much greater inducement to keep those jobs in state. The report also argues for a carve-out for animation work within the $750 million annual allocation. As it stands, animated TV shows and films will have to compete against live-action shows on a 'jobs ratio' score in order to win credit allocations. Lawmakers have been hashing out the details of the legislation in negotiations with the Motion Picture Association and a coalition of entertainment unions. In their current form, the bills would increase the base amount of the state tax credit from 20% to 35%, with a potential 5% bonus for filming in economically depressed areas or in areas outside of Los Angeles. The Alliance of Independent Commercial Producers has also advocated — so far without success — to include commercial production in the state subsidy. Best of Variety Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival New Movies Out Now in Theaters: What to See This Week What's Coming to Netflix in May 2025
Yahoo
02-05-2025
- Business
- Yahoo
Animation Guild Seeks Enhanced California Subsidy to Combat Outsourcing
Seeking to combat the longstanding flow of animation jobs to Canada and other locations, the Animation Guild issued a report on Thursday urging California to improve its tax incentive program. California's $330 million tax incentive is limited, for now, to live-action films and TV shows. Two bills, SB 630 and AB 1138, would expand the program to $750 million and would include animation for the first time. More from Variety Film Workers to Rally Sunday in Support of Doubling California Tax Incentive: 'There's Been No Work' California Lawmakers Move to Hike Film Credit to 35% for L.A. Shoots, Include Animation and Sitcoms Untitled Daniels Film, 'Community' Movie, 'Cut Off' Secure California Production Tax Credits The guild report, prepared by CVL Economics, argues that would not be enough. 'The state is now decades behind the aggressive policy strategies implemented by global competitors, and the erosion of in-state production has had a profound impact on its once-thriving animation talent pipeline,' the report states. As an example, the guild points to 'Moana 2.' The original film was produced in Burbank, but much of the sequel was made at Disney's facility in Vancouver. The union argues that decision cost California 338 jobs, plus another 479 jobs when indirect effects are taken into account. Outsourcing has long been a source of contention between the studios and the guild, and led to two strikes in 1979 and 1982. In negotiations last year, the guild proposed eliminating the outsourcing clause in the contract, but the Alliance of Motion Picture and Television Producers rejected the idea. Jeanette Moreno King, the president of the Animation Guild, said that while animation work has been sent overseas for a long time, studios have begun to ship many other tasks abroad as well, including storyboarding and directing. 'Now they are sending out entire productions,' she said. 'They've expanded what they send out. Some shows are completely not made here.' King has been involved in lobbying on the bills to expand the tax incentive program. She said that while the current bills include animation, many children's TV shows wouldn't be eligible because they don't meet the thresholds for budget and episode length. 'It's a win just to get it in there at all,' she said, adding that it's probably too late in the legislative process to do anything about the thresholds. The CVL report also notes that visual effects work has been poached by Canada for decades, with post-production hubs established in Montreal and Vancouver, while other hubs have also taken root in London and Seoul. The guild argues those jobs deserve consideration because they are at the cutting edge of technology. 'If California wants to maintain its leadership in entertainment, the state cannot only simply protectlegacy production models — it must invest in the future of the industry,' the report argues. 'Rebuilding a robust cluster of animation talent is not about nostalgia; it's about talent competitiveness.' The current California tax incentive program includes a 5% bonus for live-action productions that spend at least 75% of their VFX budget in California. The report argues that is not competitive with VFX incentives in British Columbia and other places. Some productions use the California tax incentive for principal photography and then complete their VFX work elsewhere. The report argues that VFX work should be excluded from the state's $100 million per-project cap, which would provide a much greater inducement to keep those jobs in state. The report also argues for a carve-out for animation work within the $750 million annual allocation. As it stands, animated TV shows and films will have to compete against live-action shows on a 'jobs ratio' score in order to win credit allocations. Lawmakers have been hashing out the details of the legislation in negotiations with the Motion Picture Association and a coalition of entertainment unions. In their current form, the bills would increase the base amount of the state tax credit from 20% to 35%, with a potential 5% bonus for filming in economically depressed areas or in areas outside of Los Angeles. The Alliance of Independent Commercial Producers has also advocated — so far without success — to include commercial production in the state subsidy. Best of Variety Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival New Movies Out Now in Theaters: What to See This Week What's Coming to Netflix in May 2025
