California's Film Boost: Gov. Newsom Wants More Tax Breaks

Governor Gavin Newsom has come up with a new plan to help California's film industry stay strong. He wants to increase the amount of money given as tax credits to movie and TV productions from $330 million to $750 million each year. This could start as early as July 2025, if the state's lawmakers agree to it. Newsom thinks this will keep productions in California, create good jobs, and keep the state as a top spot for the entertainment industry. The film industry has been struggling since the pandemic and last year's strikes by writers and actors. Many productions are choosing to film in other states because they offer bigger tax breaks. California's film tax credit program was started in 2009 to stop productions from leaving the state. It was first set at $100 million per year and then increased to $330 million in 2014. Newsom extended this program in 2023 and added a new feature that allows studios to get cash payments from the state if their credits are more than their tax bills.However, California still has some rules that other states don't. For example, it doesn't include the salaries of actors and other important costs in its tax credits. This makes it harder for California to compete with states like Georgia, which don't have these restrictions. Some people in California think it's not fair to give so much money to the entertainment industry when there are other important causes like education and healthcare. Recently, people in Los Angeles' entertainment community have been asking the government to put more money into the film and TV tax credit program. They want to stop productions from leaving the state and create more jobs. Experts say that one of the main reasons California is losing productions to other places is because its tax breaks aren't as good. For example, New York's program is capped at $700 million, and Georgia doesn't have a limit at all. The slow activity in Southern California is also due to other factors, like the overall decrease in production during the so-called streaming wars and cost-cutting by big media companies. Recently, FilmLA reported that production levels in the area fell by 5% in the third quarter of 2024 compared to the same time in 2023. This was during the Hollywood strikes when scripted production almost stopped.