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Hollywood creatives hoping for an extension of California’s Film & TV Tax Credit program will have to wait a bit longer.
State Sen. Anthony Portantino, who authored a bill to extend the credits until 2030, said the state Legislature will not consider SB485 until next year. The current credits are set to expire in 2025.
The move is intended to give lawmakers more time to add amendments, including one that would require cast and crew hired on participating productions to reflect state demographics.
In July 2021, the state passed SB 144, which added $330 million in addition to the $330 million in annual subsidies that was passed in 2014. It targeted increasing local film infrastructure by dedicating $150 million to productions filming on Los Angeles County soundstages.
Streamers have seen big benefits from the program—Netflix was awarded $60 million in credits and Amazon earned $16 million this year. Multiple products, including “The Flight Attendant” and “Rap Sh!t,” have relocated to California as the state government continues to try and increase local production. SB 144 tucked in $90 million just to lure productions away from other states. As California tries to entice productions to film in the state, other states also use incentives to bring in business. Georgia has no annual cap on its film tax incentive program, while New York offers $420 million annually in tax incentives.
But the overturning of Roe v. Wade has led to increased scrutiny over how studios and streamers protect their employees. Hundreds of Hollywoodcreatives—including Shonda Rimes, J.J. Abrams and Issa Rae—have demanded studios explain how they will protect workers in states that have outlawed abortions.
Gov. Gavin Newsom released a statement earlier this month telling studios it was "time to choose" between filming in states that don't protect abortion rights and those, like California, that do. Entertainment-related unions have made similar statements. The California Film Commission’s executive director stated that “California offers the best value and the best values.”
According to FilmLA, production in Los Angeles has surpassed pre-pandemic levels and TV filming is increased (when compared to a five year average). The nonprofit organization also noted that 9% of the features and 20% of TV shows shot in the area benefited from the tax program.— Kristin Snyder--
The sponsor of today's newsletter is Fenwick, one of the world's top law firms focused on technology and life sciences, including leading games, digital media, entertainment, blockchain and NFT practices. Attorneys in Fenwick’s Santa Monica office and nationwide represent more than 1,000 greater Los Angeles-based startups, established companies and venture capital investors in corporate, IP, litigation, regulatory and tax matters.
Venture Capital Firms Flock to LA for the Deals - and the Beach
Venture firm Andreessen Horowitz grabbed headlines this month when it opened an office in L.A., but it’s not alone. Companies including Bling Capital, Anthemis Group, Expa and Sony Ventures have quietly set up shop in SoCal recently.
This Week in 'Raises': Miku Lands $20M, Fair Square Secures $15M
L.A. startups raised over $69 million total this week. Here's a rundown of deals.
LA Tech 'Moves': Banking App Startup Taps Discord CMO
This week was big for entertainment tech hires. See who moved up in L.A.'s tech and startup world.
Listen Up: John Shegerian on Building More Than Businesses
The co-founder and CEO of electronic recycling company ERI speaks with Office Hours host Spencer Rascoff about transforming a tortilla factory into a gang rehabilitation center and entering the e-waste industry before it was popular.
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What We’re Reading...
- T-Mobile phones will connect to Starlink for free starting next year.
- Amazon Insiders say its new $1 billion 'Lord of the Rings' series will determine the streaming future on its app.
- TikTok laid off a number of employees from its U.S. advertising team as part of an overall restructuring.
- Moderna, one of several U.S. COVID-19 vaccine manufacturers is suing rivals Pfizer and BioNTech for allegedly copying the technology in making their vaccines.
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