California’s Film and TV Tax Incentive Program on the Brink: Will State Legislators Save the Industry?

With the California legislative session ending on August 31, the state’s film and TV tax incentive program is on the brink of disaster. The program, which has been a crucial lifeline for the struggling industry, is facing a major overhaul that could have devastating consequences for thousands of workers and small businesses.

In June, Governor Gavin Newsom signed into law Senate Bill 122 (SB 122), which caps the annual business and corporate tax credits at $5 million. While the bill aimed to curb the program’s costs, it has inadvertently created a situation where independent productions and some studio/streamer productions will be left with no incentives, effectively killing the program.

Assemblymember Rick Chavez Zbur, a key player in the negotiations, has been working tirelessly to carve out an exception for independent productions and some studio/streamer productions. In fact, a deal was in place just yesterday that would have achieved this, but legislative leadership has now taken a ‘different approach,’ according to sources.

The move has left the industry reeling, with many wondering what the future holds for the program. ‘The next seven days are critical,’ declared Assemblyman Nick Schultz, one of the primary politicians behind the post-production tax credits legislation. ‘We’re literally in the period of speak now and forever hold your peace. There’s no more time to wait. Now is the time for Hollywood to activate and be as loud as they possibly can to get this thing passed.’

The post-production tax credits program, which aims to offer a 35% incentive to lure post-production jobs to California, is also on the line. With no actual funding in place, the program’s future is uncertain. ‘We are gratified that the Senate Appropriations Committee overwhelmingly voted in favor of a standalone post-production tax credit, and we are pushing hard for its broad bipartisan support in the Senate floor vote,’ said F. Hudson Miller, president of the Editors Guild Local 700.

The fate of the film and TV tax incentive program now rests in the hands of the state’s legislators. With the legislative session ending on August 31, time is running out to pass a bill that will save the industry. The stakes are high, and the consequences of failure will be severe. Will the state’s leaders come to the rescue of the film and TV industry, or will they let it falter? Only time will tell.

As the clock ticks down, the industry is holding its breath, hoping that a solution will be found. The post-production tax credits program, in particular, is in need of funding to make it a reality. ‘We are calling on lawmakers to defend the Film and TV Tax Credit Program 4.0, which would be devastated by the recently imposed caps on tax credits,’ said Miller. ‘All three moves are vital and essential to keeping film and TV jobs, and their positive economic effect, from leaving California.’

The industry is urging its supporters to make their voices heard, to contact their representatives and express their support for the film and TV tax incentive program. The future of the industry hangs in the balance, and it’s up to the state’s leaders to decide its fate.

In related news, the California Film Commission has been working to address the concerns of the industry. ‘We’re working very hard with the governor, legislative leadership, and our partners in the Senate, and I’m optimistic that we are very close to reaching a solution that helps address the impact of SB 122 on California’s Film and Television Jobs Program,’ said Assemblymember Zbur.

The industry is also calling on the state’s leaders to provide funding for the post-production tax credits program. ‘We need to make sure that AB 2319 is passed and also that it is fully funded,’ said Miller.

The clock is ticking, and the industry is holding its breath. Will the state’s leaders come to the rescue, or will the film and TV industry falter? Only time will tell.