Latest news with #EntertainmentUnionCoalition
Los Angeles Times
7 hours ago
- Business
- Los Angeles Times
California's film tax credit boost officially signed into law to lure back Hollywood jobs
Nine months ago, Gov. Gavin Newsom pledged to more than double the annual amount of funds allocated to California's film and television tax credit program. Flanked by Los Angeles Mayor Karen Bass, legislative leaders and union representatives, Newsom said the state 'needed to make a statement and to do something that was meaningful' to stop productions from leaving the state for more lucrative incentives in other states and countries. Though Hollywood was born in California and the entertainment business became the state's signature industry, 'the world we invented is now competing against us,' he said at the time. On Wednesday, Newsom signed a bill that will increase the cap on California's film and TV tax credit program to $750 million, up from $330 million. Industry workers say the boost will help stimulate production that slowed due to the pandemic, the dual writers' and actors' strikes of 2023, a cutback in spending by studios and streamers and the Southern California wildfires earlier this year. 'We've got to step up our game,' Newsom said in a speech before he signed the bill. 'We put our feet up, took things for granted. We needed to do something more bold and significant.' The bill was passed by the state legislature last week and came after intense lobbying from Hollywood. Rebecca Rhine, Directors Guild of America executive and Entertainment Union Coalition president, credited Newsom for staying committed to the production incentive boost even after the wildfires in Southern California, federal funding cuts, the state's budget deficit and the deployment of the National Guard in Los Angeles. 'You understand that our industry is vital to the state's economy and cultural vibrancy, while also sustaining thousands of businesses and attracting visitors from around the world,' she said during the signing ceremony. 'Now, let's get people back to work.' Critics of the program and taxpayer advocates have said, however, that the tax credit is a corporate giveaway that doesn't generate as much economic effect as promised. California's increase also comes as states like Texas and New York have also ramped up their own film and TV tax credit programs. But the fight isn't over yet. Lawmakers and Hollywood industry leaders are gearing up for a vote Thursday in the legislature on a separate bill that would expand the provisions of the film tax credit program, which they say is key to making production more attractive in California and must pair with the increased program cap. That bill, AB 1138, would broaden the types of productions eligible to apply for the program, including animated films, shorts, series and certain large-scale competition shows. It would also increase the tax credit to as much as 35% of qualified expenditures for movies and TV series shot in the Greater Los Angeles area and up to 40% for productions shot outside the region. California currently provides a 20% to 25% tax credit to offset qualified production expenses, such as money spent on film crews and building sets. Production companies can apply the credit toward any tax liabilities they have in California. The bump to 35% puts California more in line with incentives offered by other states such as Georgia, which provides a 30% credit for productions. 'This bill is the second step,' Assemblymember Rick Chavez Zbur said during Wednesday's press conference. 'It's about maximizing economic impact, prioritizing equity and turning the tide on job loss.' Newsom also held out hope for the possibility of a federal film and TV tax incentive, which he had floated in May after President Trump called for tariffs on film produced overseas. 'We'd like to see [Trump] match the ambition that we're advancing here today in California with the ambition to keep filmmaking all across the United States, here in the United States,' Newsom said. 'I am hopeful that we, in the hands of partnership, continue to work with the administration.'
CBS News
5 days ago
- Business
- CBS News
California increases tax incentives for film and television to $750 million
The California legislature approved a plan to hopefully incentivize studios to shoot in the state by increasing the cap on tax credits from $330 million to $750 million. "More than doubling the program's allotted cap to $750 million annually underscores just how vital our industry is to the economic health of our state, and the power of our members' voices," the Entertainment Union Coalition said in a statement. Los Angeles, long considered the center of film and TV production nationwide, has struggled to retain its dominance in the industry in recent years, losing business to other states that offer more attractive incentives, most notably New York and Georgia. To bridge the gap, Gov. Gavin Newsom and LA Mayor Karen Bass unveiled the proposal in October. Newsom's office said he expects to sign additional legislation as part fo the tax credit expansion. Assemblymember Rick Chavez Zbur, who represents parts of LA County, applauded the expansion of the tax credit. "After years of uncertainty, workers can once again set the stage, cue the lights, and roll the cameras—because California is keeping film and TV jobs anchored right here, where they belong," Zbur said. Zbur authored AB 1138, which aims to modernize and strengthen the film tax credit program. "This is a historic investment in our creative economy, our working families, small businesses, and the communities that depend on this industry to thrive," he said. "We're not just restarting production—we're rewriting the script to put workers back at the center of California's entertainment future." Zbur's office stated that the tax credit has created 197,000 jobs and generated $26 billion in economic activity since 2009.
Yahoo
17-05-2025
- Entertainment
- Yahoo
How The L.A. Fires Sparked A Major Fight To Bring Back Local Film & TV Production: 'We Cannot Wait Until We Have Lost The Business'
For Los Angeles-based production workers, 2025 was supposed to be the light at the end of the tunnel. Instead, the year quickly fell into a pattern that has become all too familiar for the local industry when the hopes that things might finally return to normal were squandered yet again by an unprecedented, devastating event. In January, two historic wildfires ravaged the city, swallowing thousands of homes and leaving more than $250 billion in damages in its wake. After succumbing to runaway production for decades, which avalanched in the last five years following pandemic-related shutdowns and 2023's historically long, dual strikes, California's film and television production had been brought to its knees. But rather than view this latest tragedy as a death knell, it was almost as if it became the jolt the local industry needed to fight back. More from Deadline Scarlett Johansson On Why The Script For Her Directorial Debut 'Eleanor The Great' Made Her Cry: 'It's About Forgiveness' – Cannes Cover Story 'Eddington' Cannes Film Festival Premiere Photos: Joaquin Phoenix, Pedro Pascal, Emma Stone, Austin Butler & More Ang Lee Reveals Why 'Brokeback Mountain' Restored His Faith In Filmmaking: "I'm Still Standing, Still Making Movies, Thanks To That Movie" 'I think that really renewed our commitment to doing everything we could to keep this industry vibrant and thriving here in California,' says Rebecca Rhine, the western executive director and associate national executive director of the Directors Guild of America. RELATED: Rhine is leading the Entertainment Union Coalition in one of two prominent campaigns that have emerged after the fires, aimed at returning to the Golden Age of Hollywood. The coalition's primary goal with its own campaign, called Keep California Rolling, has been to lobby federal and state government officials to codify solutions. Meanwhile, Alexandra Pechman and Sarah Smith's Stay in LA campaign is not only appealing to lawmakers but also to famous faces who can wield their own influence to keep production in Los Angeles. Even as firefighters were still battling the flames, the pair amassed more than 6,000 signatures, including from the likes of A-listers like LeVar Burton and Alison Brie, in support of their initiative. 'This isn't just a Hollywood issue. This isn't just something that affects the biggest names you know,' Pechman says. 'This affects florists, small business owners, dry cleaners — all the people of our city really feel the ripple effect when this key, iconic industry is hurting.' RELATED: From 2015 to 2020, about 50% of the 312 productions that did not qualify for California's tax credit incentive relocated to another area, resulting in an approximate loss of 28,000 jobs and $7.7 billion in economic activity, according to a recent report from the EUC. The coalition makes the case that runaway production has widespread impact beyond direct job loss, affecting tourism, hospitality and more local industries. That doesn't mean that those big names don't help the cause. In fact, stars speaking out might be the only way to really get people to listen, Pechman and Smith say. 'That's why people do stay. Someone powerful enough, either in front of or behind the camera, just says, 'Well, I'm not going to make the project unless it's shot here,' and so that is hugely influential,' Smith says. RELATED: Earlier this year, DGA President Lesli Linka Glatter answered that call herself during an impassioned speech at the guild's award ceremony, advocating that productions be filmed where they are set, at the very least. She also promised her next project would film in LA. The show is Imperfect Women with Kerry Washington, Elizabeth Moss and Kate Mara, who Linka Glatter says were instrumental in the push to have the production remain local. 'There are many people that have the power to make those kinds of changes, and now is the time to do it. We cannot wait. We cannot wait until we have lost the business,' she says. State officials had already begun exploring potential solutions to the years-long production exodus in California and, in October, Governor Gavin Newsom proposed a substantial increase to the state's Film & TV Tax Credit Program to $750 million annually, which would make it the second largest in the country. Lawmakers have also introduced a pair of bills aimed at 'modernizing' the program by allowing a wider range of projects to qualify and offering more funds to each individual production. RELATED: Nearly everyone interviewed agreed that, while the state's response is a good start, additional funding alone will not be enough to staunch the bleeding of this particular issue. On a local level, Pechman and Smith have also been focused on making Los Angeles 'feel more production friendly and welcome productions back home,' via overhauls to the onerous and expensive permitting system that deters many filmmakers from attempting to shoot in the city. 'It's also about encouraging studios, whose businesses are headquartered here, to invest in the creative community where they live. I mean, we have such a rich community and history of generational craftspeople, and I think that's such an undervalued resource,' Smith says. 'We have artists who are the best in their game, and if we lose them to other places… it's almost like giving away the rich soil that this place has been growing forever.' Rhine also says the EUC is 'looking at every tool available on the federal level' to bolster statewide incentives and help states compete with international territories like the U.K. and Canada, which have been steadily poaching production from the U.S. for decades. Each state incentive program is designed to compete internationally, but given the unique challenges facing the U.S., the unions argue a federal tax incentive is also necessary. The reality is that the Hollywood unions represent workers across the country who have been impacted by a global production contraction. Per a 2023 report from the Motion Picture Association, the U.S. film and television industry alone supports more than 2 million jobs and contributes over $180 billion in total wages, encompassing 122,000 businesses nationwide. A report from ProdPro suggests that, while the number of global productions increased by 18% and generated an additional $16.2 billion in 2024, production levels last year still 'fell short of expectations'. Some have wondered whether throwing money at the issue is nothing more than a race to the bottom. With so many competing territories that might just increase their own incentives in response to any moves by California and the United States, will the state eventually find itself behind the ball again? RELATED: 'It's not just tax incentives that are luring productions away,' Smith warns. 'The cost of labor, obviously, the cost of goods, the fact that a lot of places have universal health care and pensions. It's tough for Americans to compete and for Californians to compete, given a lot of those factors, but we've just reached a point where it's compete or die,' Smith warned. 'We must take action to preserve an industry that has huge cultural impact and is such an important part of our identity and legacy in Los Angeles and throughout California. I think we've been taking it for granted for too long.' These four women are not alone in sounding the alarm on the bleak state of film and television production in California and across the U.S. In a recent episode of his podcast, Rob Lowe joked with his Parks and Recreation co-star Adam Scott that, if it were made today, the NBC sitcom likely would've been shot in Budapest. He also revealed that his game show The Floor shoots in Ireland, despite having American contestants. In short, things are looking bleak, he complained. It's true, Los Angeles is not the bustling production town it once was. According to a recent report from FilmLA, production in Los Angeles was down more than 30% over five-year averages in 2024. But, there are still a few lone high-profile productions that remain in the city, including ABC's High Potential, Amazon's Jury Duty and HBO's Hacks. 'The whole show is a little bit like our love letter to show business and to comedy and the entertainment industry at large,' Hacks co-creator Paul W. Downs told Deadline in a recent conversation, explaining the desire to film in Hollywood even though much of the show is set in Las Vegas. Hacks lost an iconic filming location when the Altadena home introduced in Season 2 as Deborah Vance (Jean Smart)'s 'side mansion' was engulfed in flames. It is one of several famous structures that are now gone, only adding to the bleakness surrounding the state of film and television in the city that was once the mecca of production. Though the path back is uncertain, the glimmer of hope remains that this will one day ring true again. 'I think our superpower in the film business is our resilience and our sense of community, and that is powerful,' Linka Glatter says. 'I do think in the worst of times, hopefully people's best selves come forward. Best of Deadline Sean 'Diddy' Combs Sex-Trafficking Trial Updates: Cassie Ventura's Testimony, $10M Hotel Settlement, Drugs, Violence, & The Feds 'Nine Perfect Strangers' Season 2 Release Schedule: When Do New Episodes Come Out? Everything We Know About Ari Aster's 'Eddington' So Far
Yahoo
02-05-2025
- Entertainment
- Yahoo
California Production Workers Increase Pressure On State Lawmakers To Support Expanded Film & TV Tax Credit Proposal
EXCLUSIVE: Production workers in California seem pretty determined to make sure that lawmakers grasp the necessity for a revamp of the state's Film & Tax Credit Program. In the 11 days since Deadline first reported that workers had sent more than 100,000 letters in support of SB630 and AB1138 to Sacramento amid some key hearings on the bills, that number has now doubled, we've confirmed. The goal is to show the Legislature just how dire the situation is and how many Californians have been harmed by runaway production in the last decade. More from Deadline WGA East Decries Polygon's Sale To Valnet & Fifth Round Of Layoffs Since November As "Self-Defeating" & "Short-Sighted" Jon Voight Has A Plan To Save Hollywood: Will Trump Or Anyone Else Care? Writers Guild Of America West Staff Union Wins Voluntarily Recognition, Moves To Negotiate First Contract That's in addition to the dozens of people who have shown up to every committee hearing on the matter to voice in-person support. 'I think the letters, the attendance at the hearing, all of this is really an indicator of both the level of angst and the level of commitment [from workers],' Rebecca Rhine, Entertainment Union Coalition President and Directors Guild of America Western Executive Director, told Deadline. So far, things are running relatively smoothly as these sister bills make their way to the Senate and Assembly floors. AB1138 did, finally, receive one no vote from Assemblymember Carl DeMaio in its Revenue and Taxation Committee Hearing on Monday. Sources tell us this was fairly expected, given DeMaio is a more Conservative member of the Legislature and doesn't indicate massive roadblocks ahead. The letter initiative has been led by the Entertainment Union Coalition as part of its Keep California Rolling campaign, which has been lobbying for the passage of SB630 and AB1138. There are still many hurdles ahead for the bills, which would not only allocate $750M annually in tax incentives for production in the state but also redefine and broaden eligibility for the program. As of now, none seem too high. We also hear that this initiative is very high on Gov. Gavin Newsom's priority list, and he's determined to get approval, at least for the funding expansion. On May 5, the Senate Appropriations Committee will hold a hearing on SB630. The topic of reviving domestic film and television production has been heating up for some time. While California has been leading the charge, it may now also become a topic of discussion on the federal level. Deadline reported Friday that Jon Voight, one of Trump's three 'special ambassador' to Hollywood picks, will soon present a plan to the President about a federal tax incentive. Best of Deadline Brad Pitt's Apple 'F1' Movie: Everything We Know So Far Everything We Know About 'Nine Perfect Strangers' Season 2 So Far 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More
Yahoo
25-04-2025
- Business
- Yahoo
A lifeline for Hollywood jobs or a corporate giveaway? The film tax credit debate returns
It's showtime for Hollywood at the California Capitol. The state's entertainment industry has spent months begging for help from Sacramento to stem the decline of film and TV production and save thousands of jobs. This week, after months of speeches and promises from public officials, two bills meant to boost the beleaguered business cleared their first legislative hurdles. The bills are intended to make California's film and TV production incentive more competitive with other states and countries by increasing the tax credit up to 35% of qualified expenditures and expanding the types of productions that would be eligible. It's a potential lifeline for the entertainment industry, which has been battered in recent years by production slowdowns wrought by the pandemic, the dual writers' and actors' strikes in 2023, a pullback in spending by the studios, the recent Southern California wildfires and productions fleeing the Golden State. "We don't want to become the car industry in Detroit or aerospace in California," said Rebecca Rhine, president of the Entertainment Union Coalition and Western executive director of the Directors Guild of America. "When our industry thrives, we think California thrives.' The bills won unanimous votes out of the state Senate revenue and taxation committee and the Assembly arts and entertainment committee. But despite Gov. Gavin Newsom's initial call last year to more than double the money allocated to the state's film and TV tax credit program, passage of the two bills is far from a done deal. Read more: Los Angeles continues to see decline in film and TV production, report says Critics have been skeptical of the film and TV tax credit program since it was introduced in 2009 under former Gov. Arnold Schwarzenegger. Some say the tax credits are corporate giveaways and don't deliver as much economic value as proponents claim. 'The economy does best when government doesn't pick winners and losers,' said Wayne Winegarden, senior fellow of business and economics at Pacific Research Institute, a California-based think tank that advocates for free markets. "This is not the right way to get a pro-growth fiscal business environment that accelerates job growth.' Additionally, California now faces a difficult economic outlook, as officials brace for potential cuts in federal funding, as well as tariff-related pressures on state revenues and stock market volatility that could reduce tax collections that fund state programs. That all forces difficult questions for legislators about which priorities to fund. In a recent post on X, Assemblymember Corey Jackson said Democratic voters in California "should be outraged that we aren't spending more on housing, allowing seniors to fall into homelessness, and allowing so many children to live in poverty. For corporate and movie studio tax breaks." Reached by phone, Jackson said that while expanding film and TV tax credits is a worthy policy, state lawmakers must consider what they'd have to sacrifice for them, particularly as the state budget is under stress. Read more: Even before the L.A. fires, Hollywood jobs were hard to find. Will the work ever come back? "If we were back in the period where we have more money than we can spend, this would be a no-brainer," Jackson said. "But it's time to bring people back to reality. This should not just be a slam-dunk to people.' Hollywood workers argue that an expanded film and TV tax credit would generate economic returns beyond the industry, with ripple effects touching tourism as well as small businesses such as dry cleaners, florists and caterers that rely on entertainment spending. And after years of struggles, workers say the industry is at an inflection point. That has led to a major lobbying effort on Hollywood's part. More than 100,000 letters have been sent to individual state lawmakers in support of the bills, with an additional 22,000 letters sent to the Senate revenue and taxation committee. Dozens of representatives from all of the major entertainment industry unions trekked to Sacramento to support the legislation, as did studio executives, their lobbyists and the Motion Picture Assn. trade group. It's the kind of show of force State Sen. Ben Allen and Assemblymember Rick Chavez Zbur, two of the bills' co-sponsors, had called for when they spoke to a crowd last week at Burbank's Evergreen Studios recording facility and urged entertainment workers to contact their representatives. "It's going to be a fight to get this done because of the headwinds," Allen told the crowd, noting that there are many competing priorities at the state level. Just the mention of the legislation was enough to elicit applause and cheers from the audience. Industry insiders and lawmakers, including at the Burbank town hall, have tried to fend off criticism that this is a gift to corporations. They described them as jobs bills that will reward the productions that generate the most employment and will not allow companies to use the tax credits until after production has wrapped. California currently provides a 20% to 25% tax credit to offset qualified production expenses, such as money spent on film crews and building sets. Production companies can apply the credit toward any tax liabilities they have in California. Raising the credit to 35% is significant, supporters say. Projects that shoot elsewhere in the state could get a credit of 40%. The legislation also would expand the types of productions that would qualify, including animated films, shorts and series, along with large-scale competition shows. Independent productions will be allocated 10% of the total amount in the program, up from the current 8%. "In some respects, the headwinds have actually strengthened the bill," Allen told The Times. "They've forced really careful, intense, thoughtful, targeted conversations and negotiations.' Outside of Hollywood, the bills have the backing of the California Labor Federation, whose executive council unanimously voted to support the legislation in February, said President Lorena Gonzalez. Though the organization is not always supportive of tax credits, the federation has always supported the film and TV program, she said. "The fact is the unique situation with Hollywood being so unionized," said Gonzalez. "In order to preserve those good union jobs and the middle-class lives that are developed as a result, we'd like to keep those jobs here.' The lobbying effort has led to unusual alliances, particularly in the wake of the strikes, with both studios and Hollywood unions rallying on the same side. Both groups, however, have worked together on previous film and TV tax credit proposals. In a letter to the leaders of the Assembly committee on revenue and taxation, Motion Picture Assn. Chief Executive Charles H. Rivkin wrote that the changes to the film and TV tax credit program would "help attract more productions and jobs in California." If the bill were enacted, he wrote, the studios will submit more applications to the California Film Commission, "leading to locating more of their productions in California, which will create and retain good jobs for Californians." But even within Hollywood's overall push, there are differing priorities among stakeholders. During the Burbank town hall meeting, postproduction workers and music scoring professionals called for carve-outs, noting that other states and countries now offer specific rebates for this work. That has led to a steep decline in production for these workers. The average number of booked recording days for a sampling of L.A.'s scoring stages is now 11 days for 2025 so far, a far cry from the average of 127 days for all of 2022 during the peak of the streaming boom, said Peter Rotter, founder of Encompass Music Partners, who helped organize the town hall. Much scoring work has moved to Europe or even Nashville, while some postproduction work has been diverted to places like Canada and London. 'It's going to take a village," Rotter told The Times. "We have one shot at this right now.' Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
