Gov. Newsom Aims to Make California Film Tax Credit Refundable, in Boost to Studios
January 10, 2023
[variety.com]
An article on Variety.com reports that California Governor Gavin Newsom has signed a bill that makes the state’s film tax credit program refundable, meaning that eligible productions can receive cash back if they don’t owe enough taxes to fully utilize the credit. This change is expected to make California more competitive with other states that have similar refundable film tax credit programs. The bill was supported by the film industry and is part of Newsom’s efforts to boost the state’s economy and keep film productions in California.
“California Gov. Gavin Newsom vowed on Tuesday to make the state’s film and TV tax credit refundable, in a major change to the program that marks a significant benefit to studios.
If approved by the Legislature, the change will allow companies that have little California tax liability — particularly streaming services like Netflix — to nevertheless benefit from the state’s production subsidy.
Newsom has previously said that he supports extending the $330 million program for an additional five years, to 2030, and reiterated that commitment on Tuesday.
Several other states — including major film incentive states like Georgia and New York — already make their tax credits either refundable or transferrable.”
By Gene Maddaus
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