Where Did the $750 Million Go? Hollywood Incentive Bill Passes CA Senate Without Newsom’s Pledge

by

The legislation designed to update and grow California’s program offering subsidies for film and television production has been approved by the state Senate. However, the current version of the bill does not guarantee an increase in the annual cap from $330 million to $750 million.

On Tuesday, there was a nearly consensus vote, with the result being 34 to 1. The sole dissenter was Sen. Roger Niello (R-Sacramento). This bill, now moving forward for discussion in the state Assembly, aims to significantly increase financial aid for filming within the state, reaching at least 35%. Additionally, it broadens the range of productions eligible for these subsidies to include TV series with fewer episodes, animated projects, and certain unscripted programs.

Or:

Tuesday saw a nearly unanimous vote (34-1) in the Senate, Sen. Roger Niello (R-Sacramento) being the lone opposer. This bill is now set for review in the state Assembly, and if passed, it would significantly enhance incentives for filming in California, offering at least 35% subsidies. Furthermore, it expands the types of productions eligible for these incentives to include shorter TV series, animation, and specific unscripted projects.

As a passionate supporter, I can’t help but feel exhilarated about this recent triumph for workers in Hollywood. For years, we’ve witnessed a steady decline in opportunities due to productions preferring to shoot elsewhere where tax incentives are more appealing. This victory, however, marks the beginning of California’s journey towards rejuvenating its program in a competitive dance to attract the entertainment industry.

Senator Tony Strickland (R-Huntington Beach) stated that it’s crucial for California to keep its position as the leading global entertainment hub. To achieve this, he emphasized the importance of staying competitive – not necessarily outperforming other states, but maintaining a comparable level of excellence.

If Senate Bill 630 gets approved, it will mark the biggest modifications to the program since its establishment in 2009. This bill, referred to as SB 630, was prompted by a substantial drop in film production within the state. Currently, California offers a 20% base credit, which is less than many other major film-producing regions such as New York, Georgia, and the U.K.

There was widespread agreement among political parties for the bill, as numerous representatives highlighted how the drop in manufacturing output affected their constituencies over the past few years.

Senator Carolina Menjivar (D-San Fernando Valley) remarked that the ripple effect is significant, given her district encompasses Burbank. She explained how this situation affects local dry cleaners and small restaurant owners near film studios, as they’ve observed a decline in foot traffic due to fewer people working in the studios.”

The original sentence conveys that Sen. Menjivar stated the domino effect is significant because it impacts businesses like dry cleaners and small restaurants near film studios, which have seen a decrease in pedestrian traffic due to less studio work, as these businesses are surrounded by studios.)

Senator Suzette Martinez Valladares (R-Santa Clarita) expressed that soundstages and editing facilities within her district are struggling due to productions preferring to work with suppliers based in other states and countries. She highlighted the fact that, although Amazon’s Fallout series was set in a post-apocalyptic California during its first season, it was filmed in New York. However, for the second season, they decided to shoot in California after receiving tax incentives.

She stated that we’re rapidly falling behind,” she said. “Other states have successfully attracted manufacturing away from California by creating whole new industries.

With the proposed legislation, there’s a possibility for productions to receive 35% of their expenditures refunded, which pertains to expenses incurred within the states. Furthermore, an added incentive of a 5% credit is offered for filming in designated locations outside of Los Angeles.

To stay competitive with other regions expanding their eligible productions for subsidies, TV series made up of two or more episodes lasting 20 minutes or more will now be eligible for the program. Currently, only series with episodes of at least 40 minutes are qualified. Other potential beneficiaries under the revised bill include sitcoms, animated films, series or shorts, and “large-scale competition” shows (excluding reality, documentary, game, or talk shows). However, these productions must have a minimum budget of $1 million to qualify.

The proposed legislation does not account for covering any part of overhead expenses, such as actor, director, and producer salaries, in receiving subsidies. At present, only California, among significant film centers, maintains this type of arrangement.

Senator Ben Allen from Santa Monica (D-Santa Monica) stated that it’s important for the state to prevent falling into a competitive decline, which he referred to as “a race to the bottom.” He also mentioned that the program is centered around job creation and stimulating economic activity, making it distinct from similar initiatives in states like Georgia.

On Thursday, the proposed bill is likely to encounter stronger opposition at the state legislature, with representatives possibly voicing worries about rising financial support for movie and television productions, considering the state’s plans for significant reductions in healthcare funding and university budgets.

Read More

2025-06-04 02:55