Latest news with #CaliforniaFilmCommission
Yahoo
6 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.
Economic Times
7 days ago
- Business
- Economic Times
California Film Credit expansion claims to bring back jobs; effect remains uncertain
iStock California Film Credit expansion California legislators are moving to greatly expand the state's Film and Television Tax Credit Program as a means of stopping the flow of runawaproduction and revitalizing a struggling entertainment industry. The expansion, if approved, would double the program's annual limit from $330 million to $750 million. But, even with the broad changes, analysts and industry officials warn that the effect on employment might not be as dramatic as anticipated. As reported by the California Film Commission, the expansion would increase direct employment by 40–50%, or approximately 4,400 to 5,500 new cast and crew jobs. However, this is only a small portion of the 17,000 jobs that have been lost since 2022, according to figures presented by the Motion Picture Industry Pension and Health Plan. The Bureau of Labor Statistics further reports that California experienced a decline of approximately 40,000 jobs within the industry since before the pandemic, with some entertainment unions having claimed that as much as half of their members have been laid off. Assemblyman Rick Chavez Zbur, chief sponsor of the expansion, recognized the limitations: 'This is not a panacea. It will not reverse the steep slide in jobs, but it will bring some of the jobs back.' He pointed out that increasing the payout might attract more high-budget films to film in California instead of abroad, although the state's incentive is still smaller per job than those from New York and Georgia. Economic studies provide conflicting views. A recent study for the Milken Institute indicated the expansion could create an additional 14,886 jobs accounting for ripple effects on the economy. The California Legislative Analyst's Office has challenged such assertions, however, to say there is "no compelling evidence" film tax credits significantly improve the overall state economy and that incentives instead could simply displace other economic activity. Industry supporters, such as Local 724's Alex Aguilar and Rebecca Rhine of the Directors Guild of America, recognize that any forward movement is necessary. Rhine commented, 'While more resources would lead to more jobs, we recognize the challenges of the current moment and competing priorities. Action is necessary now, and we cannot allow the perfect to be the enemy of the good.'The California Film and Television Tax Credit Program is a state incentive program that provides film and television production companies with tax credits they can use to offset part of their qualified costs in order to incentivize them to film their productions in California. The overall objective of this program is to assist in the creation and retention of jobs within the entertainment sector in the employments of Californians that benefit not just the actors and directors but also the large network of crew, technicians, and local businesses dependent upon film and television the plan, eligible productions—feature films, TV series, miniseries, and pilots—can qualify to get tax credits normally between 20% and 25% of their qualified expenditures, based on the type of project and whether produced by an independent or non-independent credits cut into the tax obligation of the production companies directly, so it is more desirable for them to shoot in California than elsewhere in other states or nations that provide similar program is specifically designed to generate the highest employment. For example, productions have to spend a minimum of 75% of their production budget or principal photography days in California in order to qualify, so that lots of money is spent locally and employment is generated for the people of California.
Time of India
7 days ago
- Business
- Time of India
California Film Credit expansion claims to bring back jobs; effect remains uncertain
California legislators are moving to greatly expand the state's Film and Television Tax Credit Program as a means of stopping the flow of runawaproduction and revitalizing a struggling entertainment industry. The expansion, if approved, would double the program's annual limit from $330 million to $750 million. But, even with the broad changes, analysts and industry officials warn that the effect on employment might not be as dramatic as anticipated. As reported by the California Film Commission , the expansion would increase direct employment by 40–50%, or approximately 4,400 to 5,500 new cast and crew jobs. However, this is only a small portion of the 17,000 jobs that have been lost since 2022, according to figures presented by the Motion Picture Industry Pension and Health Plan. The Bureau of Labor Statistics further reports that California experienced a decline of approximately 40,000 jobs within the industry since before the pandemic, with some entertainment unions having claimed that as much as half of their members have been laid off. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Massive Refunds Rolling Out from Close Brothers - Lookup Your Name Get Offer Undo Assemblyman Rick Chavez Zbur, chief sponsor of the expansion, recognized the limitations: 'This is not a panacea. It will not reverse the steep slide in jobs, but it will bring some of the jobs back.' He pointed out that increasing the payout might attract more high-budget films to film in California instead of abroad, although the state's incentive is still smaller per job than those from New York and Georgia. Economic studies provide conflicting views. A recent study for the Milken Institute indicated the expansion could create an additional 14,886 jobs accounting for ripple effects on the economy. The California Legislative Analyst's Office has challenged such assertions, however, to say there is "no compelling evidence" film tax credits significantly improve the overall state economy and that incentives instead could simply displace other economic activity. Live Events Industry supporters, such as Local 724's Alex Aguilar and Rebecca Rhine of the Directors Guild of America , recognize that any forward movement is necessary. Rhine commented, 'While more resources would lead to more jobs, we recognize the challenges of the current moment and competing priorities. Action is necessary now, and we cannot allow the perfect to be the enemy of the good.' What is California's Film and Television Tax Credit Program? The California Film and Television Tax Credit Program is a state incentive program that provides film and television production companies with tax credits they can use to offset part of their qualified costs in order to incentivize them to film their productions in California. The overall objective of this program is to assist in the creation and retention of jobs within the entertainment sector in the employments of Californians that benefit not just the actors and directors but also the large network of crew, technicians, and local businesses dependent upon film and television production. Under the plan, eligible productions—feature films, TV series, miniseries, and pilots—can qualify to get tax credits normally between 20% and 25% of their qualified expenditures, based on the type of project and whether produced by an independent or non-independent firm. These credits cut into the tax obligation of the production companies directly, so it is more desirable for them to shoot in California than elsewhere in other states or nations that provide similar incentives. The program is specifically designed to generate the highest employment. For example, productions have to spend a minimum of 75% of their production budget or principal photography days in California in order to qualify, so that lots of money is spent locally and employment is generated for the people of California.
Los Angeles Times
22-04-2025
- Entertainment
- Los Angeles Times
Trump named Gibson, Stallone and Voight as ‘special ambassadors.' Hollywood is still waiting for a call
Just days before beginning his second term as president, Donald Trump called Hollywood 'a great but very troubled place.' Then, with his usual aplomb and bombast, he named Jon Voight, Sylvester Stallone and Mel Gibson to be his 'special ambassadors.' The actors would be his 'eyes and ears, and I will get done what they suggest,' he wrote on his Truth Social platform. Hollywood had 'lost much business over the last four years to Foreign Countries,' said Trump, and his trio of envoys will help bring it 'back — bigger, better, and stronger than ever before!' Four months later, many of those who work in Hollywood — industry players and officials who have been actively engaged in efforts to boost production — say as far as Trump's envoys are concerned, it has been mostly 'crickets.' While the administration has taken a protectionist stance on American manufacturing and business, implementing a slew of global tariffs, it has not made any further announcements regarding the Hollywood envoys, their roles, goals or priorities to revitalize the struggling entertainment industry here. The ambassadors themselves have, for the most part, kept a low profile. 'We have reached out to all three and never heard back,' said Pamala Buzick Kim, co-founder of Stay in LA, a grassroots campaign aimed at spurring local film and TV production. She said the lack of communication has left many wondering whether Trump's envoys are 'just a bumper sticker, or are they going to, actually understand what the needs and issues, are and fight for the industry as a whole here in the States?' A spokesperson for the California Film Commission said its executive director, Colleen Bell, had a 'productive' conversation with Voight, but did not elaborate on their discussion. An individual involved with Mayor Karen Bass' entertainment business task force formed last year, who was not authorized to speak publicly, said they were unaware of any contact with the envoys. Others, including the Motion Picture Assn., which represents the major media companies and streamers, declined to comment on whether they have had any interaction with Trump's ambassadors. 'I haven't heard of anyone having any outreach from anyone from that group,' said Rep. Laura Friedman (D-Glendale), a former film producer and a longtime advocate for the entertainment industry. Friedman announced a new push to bolster production earlier this month with members of various Hollywood unions and 10 other members of Congress. 'It doesn't seem like a serious effort to me,' she said. The White House declined to comment. Trump's announcement did put a national spotlight on the homegrown film industry, which continues to struggle to rebound following a trifecta of hits: the pandemic, labor strikes and more recently, the wildfires. More problematic, California has lost its competitive edge as film crews continue to be enticed by generous incentives — leading to an exodus of productions to hubs like Georgia and New Mexico and countries including Australia, Britain and Canada. While Gov. Gavin Newsom has proposed raising the amount of money allocated annually to California's film and TV tax credit program to $750 million from $330 million, the state legislature has yet to approve the measure and the industry remains under pressure. In the first quarter of this year, on-location production dropped 22.4% compared to the same period last year, according to a report released in April by the nonprofit organization FilmLA, which tracks shoot days in the Greater Los Angeles region. 'I think part of the problem with California is they came to take this industry for granted a little bit,' Ben Affleck told the Associated Press in an interview last week while promoting his latest film, 'The Accountant 2,' in Los Angeles. Within the industry, the surprise appointment of the three actors as the president's special emissaries was received with a mixture of shock, bemusement and eye rolls. 'When they were announced, I think we were all curious about what those three think and what they think is the issue,' said Buzick Kim. 'Because I don't know if any of them have a history of speaking out on this front.' Indeed, it appears that no one was more taken aback by the appointment than the actors themselves. 'I got the tweet at the same time as all of you and was just as surprised. Nevertheless, I heed the call. My duty as a citizen is to give any help and insight I can,' said Gibson in a statement. 'Any chance the position comes with an Ambassador's residence?' he quipped, in reference to the loss of his Malibu properties in the wildfires. Neither Stallone nor Voight has commented publicly. Representatives for the actors did not respond to requests for comment. Following his appointment as ambassador, Voight's longtime business partner Steven Paul, an independent film producer and chairman/chief executive of SP Media Group, issued a press release saying that the actor had tapped him as a 'special advisor.' Along with Voight's fellow ambassadors, 'we will be working within the industry to find ways to bring runaway productions back to America while working with the government to explore a potential federal tax incentive tied to a pro-American cultural standard, among other initiatives that support independent American productions,' the statement said. Voight, Paul and Trump had discussed a new 'America First' initiative pertaining to film production over dinner in February, according to the statement. A representative for Paul said he was not immediately available for comment. All three Hollywood emissaries have been avid supporters of the president: Voight attended events at both inaugurations, Stallone has visited Mar-a-Lago and Gibson, who has a history of making racist and antisemitic remarks (for which he later apologized), ridiculed Kamala Harris during the election, saying she had 'the IQ of a fence post.' They all generated celebrity wattage during the 1980s (said to be Trump's favorite decade) — Voight was nominated for an Oscar for 'Runaway Train.' It was an era when mainstream action films rose to prominence in popular culture (think Stallone's 'Rambo' and Gibson's 'Lethal Weapon' franchises) that promoted the idea of American strength and masculinity. None has been known to be particularly involved in the nuts and bolts of Hollywood production issues of tax incentives and permits. For the past three years, Stallone has starred in the Taylor Sheridan drama 'Tulsa King,' about a New York mobster who sets up shop in Oklahoma after his release from prison. Incidentally, the Paramount+ series was originally called 'Kansas City Mob' and was set to film in Missouri, until it received a more than $14 million rebate to shoot episodes of the first season in Oklahoma City. Although Trump's announcement has largely been met with skepticism in liberal Hollywood, many see this as an opportunity to bring needed attention to an important American industry. 'I don't know if any one of those three can move the needle but the fact that it's being discussed at the federal level is a positive,' said Gregg Bilson, whose Sunland-based ISS Props has served the industry for three generations. Bilson is a member of the California Production Coalition, a group that voices the concerns of the small businesses serving the film and TV industry. While few believe the actors will roll up their sleeves on the issues — at least so far — their appointment has renewed interest in the idea of implementing federal tax credits. 'If Trump is willing to fight for all these other industries with tariffs, what's he doing for us? What's he doing to ensure that our jobs are protected here in the United States?' asked Rachel Cannon, an actress who starred on 'Fresh Off the Boat. ' She later moved back to Oklahoma City, where she founded Prairie Surf Studios and more recently Rock Paper Cannon, a venture to bring television production to Oklahoma. Cannon, a production advocate who helped recruit 'Tulsa King' and the film 'Twisters' to Oklahoma, sees a federal incentive as a path to making the American film industry more competitive with nations whose generous rebates have shifted the axis of power away from Hollywood to the U.K., Canada and other countries. 'I think what we really need to be doing is banding together and asking for a federal rebate program that can stack, because that can help subsidize these productions to stay in America. States can only offer so much that you need to have some federal support,' she said. Friedman, who has long supported the idea of a federal film tax credit, agrees. 'L.A. still has to be that dream factory, that place where people go to make it in the movies or TV. That's incredibly important to our local economy,' she said. 'But we also have to recognize that we are losing not just to other states, but we're losing to other nations. And we have to do something about that.' For now, everyone is waiting to see if Trump and his chosen trio. 'I don't know how much Trump has really drilled into the desire for that program that he said he wants to keep Hollywood here at home,' Cannon said. 'I just want to make sure there's a policy that follows up to ensure that it happens because, throwing out a press release with nothing behind it — it's not going to help us.' Washington bureau chief Michael Wilner contributed to this report
CBS News
15-04-2025
- Entertainment
- CBS News
Hollywood movie and TV production drop 22%, according to Film LA report
Movie and TV productions in Los Angeles slipped deeper into the abyss, with new numbers from Film LA showing that shoot days dropped 22% in the first quarter of 2025 compared to last year. "It is happening. We have been continually losing our market share," said Colleen Bell, executive director of the California Film Commission. "These times require bold moves." Gov. Gavin Newsom and democratic lawmakers are moving ahead with legislation to massively increase financial incentives to claw back TV and movie production. LA has seen an exodus for years, with filmmakers going to other states and countries that offer studios larger rebates and refunds. "The governor's proposal actually increases the tax credit from $330 million to $750 million," Assemblyman Rick Zbur said. "I actually was thinking two years ago we needed this. I've known that that has been a problem. I think we've had a bit of an issue educating legislators in other parts of the states to understand what a crisis we're facing now." The COVID-19 pandemic, Hollywood actors and writers strikes and recent fires exacerbated the filming crisis as the entire industry faces a changing media landscape. "Think in terms of the internet, social media," producer Patrick Caligiuri said. "Also, there's no rules anymore ... It could be anything now." The shrinking productions have added fear to many in the industry. "My concern is that we're losing this talent base," Academy Award-winning documentarian Peter Rotter said. "They have to go find work elsewhere and find an opportunity to feed their families."
