Courtesy photo
Wave Staff Report
LOS ANGELES — Mayor Karen Bass rallied support for the proposed expansion of the California Film Tax Credit program Feb. 26 joining Assemblyman Rick Chavez Zbur, Assemblyman Isaac Bryan, state Sen. Ben Allen, and other state legislators who introduced new bills to strengthen and modernize the program.
Bass has been a staunch advocate for California’s Film Tax Credit program, which was originally created under her leadership as speaker of the Assembly.
“I want to thank Assemblymembers Zbur and Bryan, Senator Allen, and other legislative leaders for taking action to expand this important program and fighting back to keep our signature industry in Los Angeles and in California,” Bass said. “Our city was dealt a big blow by the wildfires but we will come back stronger, and one way to do that is by keeping our signature industry here at home.
“These bills … are a milestone in this fight and I look forward to seeing this expansion passed this session.”
Bass stood alongside a coalition of supporters including labor leaders who are championing the effort to strengthen and modernize the Film and TV Tax Credit Expansion. Late last year, Bass joined Gov. Gavin Newsom to unveil the historic expansion of the program.
The ambitious announcement positions California to become the top state for capped film incentive programs, surpassing other states like New York, which have been taking entertainment jobs away from Los Angeles and the state.
The legislation, Assembly Bill 1138 and Senate Bill 630, is aimed at modernizing California’s film and television tax credit program to retain and grow jobs and small businesses that support the entertainment industry and reinforce California’s leadership as the global hub of creativity and innovation.
Until recently, the entertainment industry accounted for more than 200,000 direct jobs in California and resulted in billions of dollars in economic activity. However, other states and countries have adopted highly competitive film and television tax incentives, luring jobs and productions away. The legislative package modernizes the program to assure that it protects jobs, remains competitive and allows California to retain its leadership in this industry.
“Hollywood was born here in California and this iconic industry is a cornerstone of our economy, providing hundreds of thousands of high-skilled, high-wage jobs, supporting thousands of small businesses, and generating more than $26 billion in economic activity since the film tax credit’s inception,” said Zbur, D-Los Angeles.
“California is experiencing significant competition from other states and countries because of aggressive tax incentive programs. This has led to a drop in film and television production in California, which has been significant, and the job and small business losses are harming our communities.
“This isn’t just about red carpets and award shows. This is about middle-class jobs, small businesses and economic opportunity. It funds our schools, bolsters our communities and keeps California a global leader in entertainment. To keep these jobs and economic benefits in California, we must take bold action to strengthen and modernize the Hollywood Film Tax Credit.”
Since its launch in 2009, the program has been oversubscribed every year, with more productions applying for credits than it can accommodate. Data from recent years shows that limited tax credit funding — combined with growing competition from other states and countries — has led to lost production spending, job losses and significant economic impacts on local communities.
“It’s critical we continue to invest in our film and television industry,” said Allen, D-El Segundo. “This expansion will create jobs, support local businesses, and help bring production back to California. By providing increased funding for this program, we will also ensure that the state remains competitive, takes advantage of existing infrastructure, and continues to be a beacon for creativity and economic growth.”
The Film & Television Tax Credit Program has already proven highly successful in generating economic activity, with each tax dollar approved resulting in a return of $24.40 in output, $16.14 in gross domestic product, $8.60 in wages, and $1.07 in state and local tax revenue.
The bills introduced by Zbur, Allen, and Bryan are designed to modernize and strengthen the program to meet the growing demand, bringing even more projects to California and fueling the state’s economic recovery.
“The film industry is a vital economic engine for all of California,” said Bryan, D-Culver City. “Our investments in production and storytelling uplift communities and drive opportunity. The economic benefits our state receives is multiplied by every dollar we invest. We have to protect creativity and we have to protect the livable wage jobs that are required to bring that creativity to life.”
Zbur and Allen both serve on the California Film Commission. All three authors represent districts with a significant number of employees in the arts and entertainment industry.
In addition to championing a new film tax credit program, Bass, during the first two years of her administration, has taken several actions to support the entertainment industry.
She established an Entertainment Industry Council to draw on the expertise of industry leaders to act on reversing keeping production local.
She also signed Executive Directive 8 to take steps to streamline local film permitting processes, creating transparency and a customer service-oriented culture towards the industry to keep production and jobs in the city.
She also created new studio and sound stage concierge services, which cut red tape and provide direct assistance with city departments. The program has helped seven new studios and sound stages. In addition, 8.1 million square feet of soundstage, media production and associated creative office space are in the pipeline within the city.
