California Set to Extend FILM AND TELEVISION TAX CREDITS

California Governor Gavin Newsom is poised to sign groundbreaking legislation addressing key issues in Hollywood, including tax credits, safety protocols, and diversity requirements. This comprehensive bill, publicly revealed on a tight schedule, represents a significant compromise between state lawmakers and the governor, resolving long-standing industry issues.

The legislation extends California’s film and television tax credit for five additional years, introducing a “refundable” element. This innovation allows studios to receive cash payments from the state when their credits exceed their tax liabilities. This move is in response to intense competition from other states and has been a priority for Hollywood studios.

Safety in film production is also a significant focus of the legislation. It mandates that productions receiving tax credits adhere to new safety regulations, such as hiring a safety advisor for risk assessment during filming. Additionally, it requires prop masters and armorers handling weapons to possess firearms training and state permits, addressing safety concerns that arose following the tragic “Rust” shooting.

Diversity is another core aspect of the legislation, with tax credits tied to meeting diversity targets. Furthermore, a portion of tax credits will be directed towards job training programs at community colleges, particularly benefiting students of color. A key inclusion is the requirement to add a member with expertise in diversity, equity, and inclusion to the state film commission.

This bill’s multifaceted approach aims to cater to the needs of both Hollywood studios, who seek tax credit benefits, and workers in the industry who prioritize safety and diversity. By expanding the tax credit program and increasing its accessibility, it is anticipated that more companies, beyond Disney and Universal Studios, will benefit, ultimately boosting the state’s film production industry and safeguarding jobs. The legislation is part of a package of budget-related bills as California legislators and Governor Newsom navigate a substantial budget deficit while addressing the film industry’s needs.