(IMAGN) California Gov. Gavin Newsom spoke at Shasta College in Redding on Monday, Dec. 16, 2024. Newsom, 57, is among a generation of Democratic politicians under 60 who are seen as the future of the party.
Los Angeles, California – California lawmakers are pushing to make the Golden State an even more enticing destination for film and TV productions, with a new bill aimed at significantly increasing tax incentives. The proposed changes will not only raise the subsidy payout to 35%, but also expand eligibility to include a broader range of productions, from animated films to sitcoms and even large-scale competition shows.
At the heart of the proposal is the desire to revitalize California’s struggling production workforce. With Gov. Gavin Newsom’s commitment to increasing the annual funding for film and TV incentives from $330 million to $750 million, the state is looking to combat a severe downturn in the industry. The new bill, SB 630, was introduced last month and amended on Tuesday to include the enhanced tax credit, with a goal of keeping California competitive with other major film hubs like Georgia and New York, both of which offer up to 30% rebates.
Currently, the state offers a tax credit of 20% or 25% for live-action films and scripted TV shows. The proposed changes would increase the rebate to 35% for projects filmed within a 30-mile radius of Beverly and La Cienega boulevards, which would also include locations like Castaic, Pomona, and the Ontario airport. The expanded eligibility would make animated films and TV shows, sitcoms, and large-scale competition shows all eligible for the credit, as long as they meet the minimum budget requirement of $1 million.
The bill also lowers the minimum required runtime for TV shows to qualify for the credit, opening up opportunities for half-hour sitcoms, which previously were excluded unless they were at least 40 minutes long. For example, HBO’s “Veep” could have qualified for $20 million in incentives for its final three seasons if it had filmed in California rather than relocating to Maryland.
In addition to expanding eligibility, SB 630 proposes a 5% bonus for productions that film in designated “economic opportunity zones,” providing additional benefits for filming in certain areas. The bill also makes it easier for soundstage construction projects to qualify for incentives, which would ideally stimulate more development in the state’s film infrastructure.
With the new amendments, SB 630 aims to make California more attractive to a wider variety of productions, encouraging more filming in the state and bolstering the local economy. The bill will now be reviewed by a state Senate committee, with hearings set to take place on Wednesday. If passed, these changes could signal a new era of growth for California’s entertainment industry.
