California Governor Gavin Newsom (D) announced a proposal that would double the size of a tax credit program supporting Hollywood.
Should the proposal move forward, the state’s Film & Television Tax Credit Program would increase from $330 million to $750 million a year.
The “ambitious” expansion of the program would “position California as the top state for capped film incentive programs, surpassing other states like New York,” a press release for the proposal says.
“California is the entertainment capital of the world, rooted in decades of creativity, innovation, and unparalleled talent,” Newsom said. “Expanding this program will help keep production here at home, generate thousands of good-paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”
“We’re at about 80% of what should be normal for LA right now, and I don’t think we’re going to see much of a change from that number in the near future,” FilmLA President Paul Audley told ABC 7. “We knew that the streamers and the studios were reducing the amount of content they produce. We knew that there was going to be less in L.A. as they began to look overseas for cheaper places to film. And we knew we had other jurisdictions beginning to compete more on incentives and credits than California is.”
Some companies, such as Netflix and NBCUniversal, built studios in Albuquerque, New Mexico, to take advantage of the state’s 35% tax incentive.
Georgia, another state seeing an increase in productions, offers 30% credit on film and TV costs. The state does not limit the total number of credits that can be issued each year.
