Gavin Newsom signs bill to create new film and TV tax credit in California
Gov.Gavin Newsom is rolling out another multimillion-dollar lifeline for Hollywood, this time aimed at keeping editors, visual effects artists and other behind-the-scenes workers from taking their talents out of California.Newsom signed Assembly Bill 2319 on Friday at the Television Academy in North Hollywood, creating what supporters describe as a first-of-its-kind California tax credit specifically targeting post-production work.The new program will offer a 35% to 50% credit on qualified California post-production expenses, including picture editing, sound, music, visual effects and finishing.Unlike California’s existing film and television incentive program, productions won’t necessarily have to shoot in the Golden State to qualify.Under the current program, post-production costs can be covered if at least 75% of filming or the production’s overall budget is spent in California.
The new credit is designed to lure post-production work to the state even when cameras are rolling somewhere else.“This is a big victory in our fight to save California’s entertainment industry, and we’re just getting started,” said Assemblyman Nick Schultz, a Burbank Democrat who authored the legislation.“This program will literally save jobs here in Los Angeles and across the state,” Schultz added.“When California competes, we all win.”But the program is starting considerably smaller than supporters originally envisioned.Schultz initially sought $100 million for the post-production credit, an amount also backed by the Motion Picture Editors Guild.
Lawmakers ultimately settled on just $10 million, one-tenth of the original proposal.The incentive comes as California loses some of its grip on the post-production industry amid competition from other states and countries dangling their own tax breaks.California’s share of US post-production employment has plunged from 53% to 42% over the past 13 years, according to CVL Economics data cited by the Los Angeles Times....