Latest news with #AssemblyBill1138
Yahoo
2 days ago
- Entertainment
- Yahoo
California Assembly Passes Film Tax Bill to Expand Production Incentives
The California State Assembly has overwhelmingly passed a bill that would overhaul the state's production tax incentive program, a key step in legislators' efforts to provide support to struggling Hollywood workers. The vote on Assembly Bill 1138 was 73 in favor and one against, and comes a day after a similar bill, SB 630, passed 34-1 out of the state senate. The bills now head to the opposite houses as its co-authors say they are looking to expedite the committee vote process so that they can be passed by the legislature, signed by Gov. Gavin Newsom, and implemented by the California Film Commission all ideally before the legislative session ends for the year in September. 'We are in an emergency, given the unemployment levels and the loss of business in California due to the film industry, so we are working with the legislative leadership to find ways to have the bill go into effect this summer,' said Hollywood Asm. Rick Chavez Zbur, who is one of the co-authors on the bills. The two bills had language removed that calls for the program's cap to be increased from $330 million to $750 million, though that increase is still included in Gov. Gavin Newsom's revised proposed budget for the coming fiscal year. Zbur says that there is high confidence among supporters of the program expansion that the cap raise will be approved in the final budget. 'The structural support that we are receiving from all of the entertainment unions, all of the studios, independent producers, the sound stage managers and owners is uniform, and I've never seen anything like it,' he said. The two bills, known together as the California Film & TV Jobs Act, would expand the types of productions eligible for the tax credit, including animated productions and TV shows with a half-hour runtime. The bill also allows productions that shoot in Los Angeles County and other select nearby shooting locations in Southern California to be eligible for an increased tax writeoff of 35% of all eligible spending. According to the Bureau of Labor Statistics, the number of film and TV production jobs in California in 2024 fell by approximately 40,000 from the all-time high recorded in 2022, when ongoing demand for streaming shows and a need to catch up on projects delayed by the 2020 pandemic helped fuel a surge in productions. But a variety of factors led to production jobs dropping not just in California but in other major American production hubs like Georgia and New York in 2024. Among them was an industry-wide cutback in production spending as media companies looked to make their streaming services profitable, as well as increased competition from other countries with their own production tax incentives. The combination of that drop in jobs and the loss of work caused by the 2023 strikes that shut down productions for 191 days has led to thousands of entertainment workers in California facing serious financial struggle and has called the future of a cornerstone of the state's economy into question. The post California Assembly Passes Film Tax Bill to Expand Production Incentives appeared first on TheWrap.
Yahoo
3 days ago
- Business
- Yahoo
California Senate Approves Film & TV Tax Credits Bill
In a near-unanimous vote, the California Senate today passed its version of legislation aimed at expanding and retooling the state's Film and Television Tax Credit Program. The vote on Senate Bill 630 was 34-1, with the only nay coming from Sen. Roger Niello, who represents the city of Sacramento and surrounding areas. The bill (read it here) now moves on to the state Assembly. More from Deadline Show Us The Money: When Can Productions Expect To Reap Benefits Of California's Proposed $750M Film & TV Tax Credit Expansion? SAG-AFTRA's 'Here's Looking At You L.A.' & Mayor Karen Bass Push For State & Federal Tax Incentives To Get Hollywood Working Again Sweetened New York Production Incentives A Go As State Budget Passes Along with Assembly Bill 1138 — which passed the Appropriations Committee last month — the legislation would expand the definition of a qualified motion picture, allowing additional projects to apply for the program, including series with episodes averaging 20 minutes or more, animation films, series, and shorts, and large-scale competition shows. After years of strife for the California film and television industry, Gov. Gavin Newsom in October proposed a significant increase to the overall cap on incentives, more than doubling it from $330 million to $750M annually. SB630 and AB1138 seek to do more than just provide additional finance incentives to studios who bring physical production back to California. The sister bills also are meant to 'amend, update, and modernize' the program. The legislation comes amid the latest spurt of runaway production as other states ramp up their film and TV tax incentives programs in an effort to lure production away from California. New York last month passed a state budget that includes expanded incentives. RELATED: Also getting Hollywood's attention is President Donald Trump's bombshell announcement of planned tariffs on movies produced outside the U.S., which were decried many in the industry, along with Newsom, who said Trump has 'no authority' to impose the tariffs. Here is how the voting on SB630 went: Best of Deadline 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More Everything We Know About 'Nobody Wants This' Season 2 So Far List Of Hollywood & Media Layoffs From Paramount To Warner Bros Discovery To CNN & More
Yahoo
3 days ago
- Business
- Yahoo
California Film Tax Credit Overhaul Bill Passes State Senate, Funding Debate Over Cap to Come
A California bill that would loosen the eligibility requirements and expand the benefits of the state's film and television tax credit program was passed by the State Senate in Sacramento on Tuesday, clearing a key vote as lawmakers look for ways to halt and reverse the decline of production jobs for entertainment workers in the Golden State. Senate Bill 630 passed its floor vote with 34 state senators voting in favor of the bill with only one vote against. The bill moves next to the State Assembly, which is set for a floor vote on its version of the program expansion, Assembly Bill 1138, this Thursday. Combined, the two bills have been named the California Film and Television Jobs Act by its authors, which include several Los Angeles-based legislators like Hollywood Asm. Rick Chavez Zbur and Westside State Sen. Ben Allen. The bills would expand the types of productions that can qualify for the tax credit to include, among others, animated TV programs with a minimum budget of $1 million per episode and live-action TV programs with a half-hour runtime. The bills also raise the tax credit rate for productions shot in Los Angeles and select nearby shooting areas from 20% to 35% of qualified spending, an addition done to incentivize job creation in Hollywood's backyard amidst rising living costs and in the aftermath of January's wildfires in Pacific Palisades and Altadena. But questions still remain over whether this expansion will come with an increase in the tax credit program's cap, which currently stands at $330 million per year. Last fall, Gov. Gavin Newsom threw his support behind a drastic increase in that cap to $750 million year, which would make it the third-highest program in the country behind Georgia, which does not have a cap on its tax credit program, and New York, which last month raised its cap to $800 million. Two weeks ago, the California Senate Budget Committee removed language from SB 630 that called for the $750 million cap raise over objections to funding changes being made outside of the state's budgetary process, which reaches a critical stage this month as Gov. Newsom is set to present a revised proposed budget amidst uncertainty over federal funding and business revenue stemming from the Trump Administration and its economic policies. While state law requires California to pass a budget bill by June 15, sources tell TheWrap that the deadline may not provide a final decision on how much funding the tax credit program gets due to its status as a budget appropriation that is not an essential part of state infrastructure and government function. Industry insiders and legislative reps said they could not provide a timetable on when the budget cap for the program would be finalized. The post California Film Tax Credit Overhaul Bill Passes State Senate, Funding Debate Over Cap to Come appeared first on TheWrap.
Yahoo
22-04-2025
- Entertainment
- Yahoo
California Film and TV Tax Credit Expansion Passes First Committee Vote
One of two bills designed to combat the loss of film and television productions in California by expanding the eligibility rules for the state's tax incentive program passed its first committee vote on Tuesday. Assembly Bill 1138, the California Film & Television Jobs Act, was passed by the CA Assembly Committee for Arts, Entertainment, Sports and Tourism and now advances to a hearing by the Assemble Revenue and Tax Committee next week. A hearing for a companion bill, Senate Bill 630, is scheduled for Wednesday. 'California's film and television industry isn't just part of our cultural identity — it's an economic powerhouse that supports hundreds of thousands of good-paying jobs,' said Hollywood Asm. Rick Chavez Zbur, who is a co-author on the bill. 'But without swift action, we risk losing it all. AB 1138 & SB 630 are about making sure California stays competitive, so that workers aren't forced to leave the state — or the industry they love — to make a living. This is a jobs bill, a small business bill, and a bill to keep our creative economy right where it belongs: here in California.' Among the changes proposed by the two bills include reducing the runtime required for a TV show to be eligible for incentives from 40 minutes to 20 minutes. The 40-minute limit was set during the last overhaul of the tax credit program in 2014 to emphasize prestige TV dramas, which were declining in California at the time. But with TV production in Los Angeles County down 30% year-over-year and 58% from its all-time high in 2021, according to FilmLA, a reduction in the runtime requirement would allow sitcoms and other half-hour shows that provide a significant number of production jobs to be eligible for tax credits. The bill also proposes expanding the eligibility list for the credit to include 'animation films, series, shorts and large-scale competition shows' with a minimum budget of $1 million. To further incentivize production in Los Angeles, the bill proposes increasing the tax credit to 35% for any production that shoots within the thirty-mile radius of Beverly and La Cienega Boulevard, as well as other Southern California shooting locations such as Agua Dulce, Pomona and Ontario International Airport. 'Today's committee vote to pass AB 1138 sends a clear message to California's entertainment workers, storytellers, and the thousands of businesses that service this industry in all corners of the state,' said Culver City Asm. Isaac Bryan. 'We see you, we value you, and we will fight for you.' 'California's film and television industry is part of who we are as a state. As productions move elsewhere, we risk losing not just jobs, but a piece of our cultural identity,' said Fullerton Asm. Sharon Quirk-Silva. 'I am proud to support AB 1138 and SB 630, and I thank Assemblymember Zbur and Senator Allen for their leadership in keeping California the heart of the entertainment world. This bill helps ensure that the workers and families who power this industry can continue to thrive right here at home.' The post California Film and TV Tax Credit Expansion Passes First Committee Vote appeared first on TheWrap.
Yahoo
27-02-2025
- Entertainment
- Yahoo
Entertainment Union Coalition to Lobby in Sacramento as Part of Tax Credit Expansion Campaign
As efforts ramp up in Sacramento to expand California's film and TV production tax incentive program, the Entertainment Union Coalition (EUC) has launched a new campaign that will rally Hollywood labor to lobby for the expansion. The new program, titled 'Keep California Rolling,' is kicking off in advance of the Oscars and will have its first major action on March 5, when 100 union workers will travel with EUC leaders to Sacramento. The workers will lobby members of the state legislature to support Gov. Gavin Newsom's proposed expansion of the tax credit program from $330 million to $750 million. 'California's entertainment industry sustains hundreds of thousands of middle-class jobs across every sector and in every corner the state,' said EUC President and Directors Guild of America Western Executive Director Rebecca Rhine. The Entertainment Union Coalition includes all of the top entertainment unions in California, including WGA West, SAG-AFTRA, the Directors Guild, Hollywood Teamsters 399, the California IATSE Council, LiUNA 724 and the American Federation of Musicians. Workers from all member unions are expected to attend the lobbying session in Sacramento. 'It's essential that the expansion of the Film & TV tax credit program prioritizes workers rather than corporate profits,' she continued. 'The EUC fully supports the governor's proposal, marking the most significant expansion to the program in decades, but we must ensure it delivers on its promise: keeping production, and the jobs it creates, right here in California, where workers and their families can thrive in their own communities.' The launch of 'Keep California Rolling' comes a day after several Los Angeles-based state lawmakers unveiled a pair of bills, Assembly Bill 1138 and Senate Bill 630, intended to make significant changes to the tax credit program. Details of those bills are still forthcoming pending meetings between the bill's authors and major stakeholders — including the EUC and Hollywood studios — but a major expected change is a drastic expansion of the types of productions that would be eligible for tax credits. This could possibly include categories like reality TV, which saw a near 46% year-over-year decline in shoot days in Los Angeles, according to FilmLA. '77% of the projects that are unable to secure a tax credit here in the state end up going elsewhere. These are productions that wanted to do the work here,' State Sen. Ben Allen said Wednesday. 'This has led to a loss of nearly a billion dollars in production spending which leads to lost jobs, lost economic gains.' The post Entertainment Union Coalition to Lobby in Sacramento as Part of Tax Credit Expansion Campaign appeared first on TheWrap.
