California Is Issuing A $1.65B Film/TV Tax Credit to Lure Productions Away From Anti-Abortion States
Gov. Gavin Newsom called on companies to stop doing business in states that have “waged a cruel assault on essential rights” in the dark shadow of the Supreme Court’s decision. Gov. Newsom delivered a handsome open letter to studios and producers by showing up with 1.65billion in tax credits for filmmaking.
Image Credit: (Jay L. Clendenin / Los Angeles Times)
The Governor is putting his full support behind legislation that will extend California’s film and television tax program for an additional five years through 2030. This bill, if passed, will provide $1.65 billion or $330 million annually in tax credits to film, TV and other media productions beyond 2025, when the program was set to expire. Last year, Gov. Newsom signed off on an additional $180 million in incentives over the next two years, which temporarily increased the annual amount in incentives to $420 million, thanks to the budget surplus. The expansion of the program included $150 million in tax credits to also encourage soundstage construction.
“As other states roll back people’s rights, California will continue to protect fundamental freedoms for all and welcome businesses that stand up for their employees,” Newsom said in a statement. “Extending this program will help ensure California’s world-renowned entertainment industry continues to drive economic growth with good jobs and a diverse, inclusive workforce.” Gov. Newsom continued with his remakrs, emphasizing that California shares the values of people working in the film industry. He continued, “So to those in power to make decision about where to film, where to hire, where to open new offices, we in California say: Walk the walk.”
Also jumping into the conversation about bringing more film and tv production back to California was, the California Film Commission Executive Director Colleen Bell, she urged Hollywood to turn away states that offer such lucrative tax incentives but oppose reproductive rights. She noted that it’s ultimately “bad for business.”
The state’s film and television tax program has generated $24 in economic activity for every $1 invested, helping create over 100,000 jobs, according to the governor’s office.
