Latest news with #SenateBill630
Yahoo
7 days ago
- Business
- Yahoo
Where Did the $750 Million Go? Hollywood Incentive Bill Passes CA Senate Without Newsom's Pledge
Legislation aimed at modernizing and expanding California's program that provides subsidies to film and TV productions has passed the California Senate, though this version of the bill doesn't commit to increasing the cap from $330 million to $750 million a year. Tuesday's near unanimous vote was 34 to one, with the only dissent coming from Sen. Roger Niello (R-Sacramento). The bill, which now heads to the state Assembly for consideration, would vastly boost subsidies to shoot in the state to at least 35 percent while expanding the category of productions that qualify to include shorter TV shows, animated titles and certain types of unscripted projects. More from The Hollywood Reporter New Report Portrays California's Film and TV Production Environment as Uniquely Burdensome and Expensive Steven Paul, Architect of Trump Ambassador Plan to Hollywood, Buys Production Facility L.A. Mayor Vows to Cut Red Tape and Make It Easier to Shoot Movies and Shows In the City Its passage is a crucial victory for workers across Hollywood who've seen significantly less work as productions increasingly opt to shoot in other areas that offer more tax credits. It's the first step in revamping California's program amid a tit-for-tat race to host the entertainment industry. 'We need to do whatever we can to make sure California remains the number one entertainment capitol of the world,' said Sen. Tony Strickland (R-Huntington Beach). 'In order to do that, we need to be in the ballpark. We don't need to top other states, but we need to be in the ballpark.' If passed, Senate Bill 630 would bring the most significant changes to the program since its inception in 2009. The bill, SB 630, was spurred by a historic downturn in filming in the state. The 20 percent base credit offered by California is lower than most competitive film hubs, including New York, Georgia and the U.K. There was broad bipartisan support for the bill, with several lawmakers stressing the impact that the downturn in production has had on their districts in recent years. 'The domino effect is vast,' said Sen. Carolina Menjivar (D-San Fernando Valley), whose district includes Burbank. 'This impacts dry cleaners and the people with small restaurants around these studios. They've noted a decreased amount of pedestrian traffic to their businesses because they're surrounded by studios and there's not a lot of work.' Sen. Suzette Martinez Valladares(R-Santa Clarita) said that soundstages and postproduction houses in her district are suffering as productions opt to work with vendors in other states and countries. She pointed to the first season of Amazon's Fallout filming in New York despite the story taking place in a post-apocalyptic California (season two opted to shoot in California after receiving tax credits). 'We're losing significant ground,' she said. 'Other states have built entire industries luring production away from California.' Under the bill, productions could get 35 percent of their spend back for costs incurred in the states. An additional five percent credit would also be available for shooting in certain areas outside Los Angeles. And in a bid to keep up with other regions broadening the types of productions that can receive subsidies, TV shows consisting of two or more episodes of at least 20 minutes would qualify for the program, which currently only allows series with episodes of at least 40 minutes to qualify. Other productions that could get credits under the revisions to the bill include sitcoms, animated films, series or shorts and 'large-scale competition' shows, excluding reality, documentary programming and game or talk shows. They must have budgets of at least $1 million. The bill, however, doesn't contemplate allowing any portion of above-the-line costs, like salaries for actors, directors and producers, to qualify for subsidies. California is currently the only major film hub to maintain such a scheme. Sen. Ben Allen (D-Santa Monica) said that the state wants to 'avoid a race to the bottom.' He added that the program is 'grounded in jobs creation and economic activity' unlike Georgia's. The legislation is expected to meet more resistance on Thursday at the state Assembly, where lawmakers could express concerns over increasing subsidies to film and TV productions as the state proposes major cuts to health care and universities. 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
7 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
26-03-2025
- Entertainment
- Yahoo
California State Senators Call for 35% Tax Credit for All Los Angeles Productions, Aim to Add Animation and Sitcoms
California lawmakers behind one of the two bills intended to expand the state's film and TV tax incentive program have unveiled the legislation's full language, which includes calls to expand the types of productions eligible and offer a 35% credit to all productions based in Los Angeles. In the full language of Senate Bill 630 first introduced by Santa Monica State Sen. Ben Allen, changes to the tax credit program include reducing the runtime required for a TV show to be eligible for incentives from 40 minutes to 20 minutes. The 40-minute threshold was established during the last major overhaul of the program in 2014 to prioritize prestige TV dramas. But with TV productions once regularly filmed in California now leaving the state for more lucrative tax credit packages, the 20-minute threshold would allow sitcoms to apply for the incentives. The bill also proposes expanding the eligibility list for the credit to include 'animation films, series, and shorts, and large-scale competition shows' with a minimum budget of $1 million. Such a proposal comes as much of Hollywood animation has been outsourced to other countries like Canada, England and France, the latter of which being where 'Despicable Me' studio Illumination does much of its production business. But the proposal does make a notable exception to that expanded eligibility, saying that 'traditional reality, game shows, talk shows, or documentary television programming' would not be included. TheWrap has reached out to Sen. Allen's office for further clarification. 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. That expansion comes as entertainment workers in Los Angeles have launched the Stay In LA campaign, calling on studios, filmmakers, unions and lawmakers to come together to do all it can to bring productions back to Hollywood to help crew members and others in the industry who have seen their financial stability shaken by the COVID-19 pandemic, the 2023 strikes and this past January's wildfires along with the ongoing production exodus. The bill stops short of Stay In LA's topline demand, which is to uncap the tax credit program for three years as an emergency measure to bring as many productions back to Los Angeles as possible. SB 630 is set for a hearing by the California Senate rules committee on Wednesday. A companion bill, Assembly Bill 1138, has also been introduced with details of its proposed changes still forthcoming. The post California State Senators Call for 35% Tax Credit for All Los Angeles Productions, Aim to Add Animation and Sitcoms 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.
