California Gov. Gavin Newsom Wednesday promoted the newly expanded film and television tax credit program as the entertainment industry continues to struggle with rebound following the Covid-19 pandemic and the Hollywood strike.
Joining elected officials and entertainment industry workers, including HBO Max’s “Pit” show “ER,” Newsmom said the state will grant tax credits to television and film studios, including independent productions, to secure $750 million instead of $330 million before.
The governor’s office is projected to generate $664 million in total statewide spending, including more than $320 million in wages for California workers. The Governor has also awarded 16 new television shows through the program, collectively referring to bringing a total of $1.1 billion in spending and nearly 6,700 cast and crew jobs across the state.
Faced with tough competition from Canada and other states, including Georgia and Louisiana, states need to compete “in a very scary way” due to low costs.
“We changed some of the standards. We created an incentive,” Newsom explained. “These incentives are used to withstand this investment as they are related to a $150 million tax incentive for general wage union jobs.”
The new TV projects approved in the last three TV application windows of the program include nine updates, two pilots, four new shows and one relocation show. Overall, the project is expected to employ 6,664 cast and crew members, as well as 59,000 background performers.
Weil welcomed the expansion of the tax credit, saying more incentives would be translated into more successful films and television shows filmed in Los Angeles, which has a long history of talented entertainment industry workers.
“The city has been raising talent for decades, decades, and decades, and its apprentices are worth a lot when it comes to making movies and TV shows,” Weil said. “I think that’s why ‘Pit’ was so successful. ”
Weil said his medical show filmed two months of pre-production, in addition to 135 days of seven months, employing 350 full-time workers, along with hundreds of other people, and spent $35 million on wages.
In addition to “The Pitt,” highlights of the project include several reply television series, including Hulu’s hits “Paradise” and CBS’ “NCIS: Origins.”
Also, two shows filming a total of 23 filming dates outside the Los Angeles area and one repositioning series – Prime Video’s “Mr. & Mr. Smith.”
The increase in production also translates into reduced profits for small businesses serving people working in the entertainment industry, said Tommy Ibarra, who owns a reel waste recycling company.
“When a production shoots here in California, the money spreads across all corner cafes, hardware stores, dry cleaners and the whole community,” he said.
The California Film Commission will merge funds for the upcoming application cycle (television) scheduled for July 7th to 9th with August 25th to 27th (film). Future Film Committees will provide more information
day.
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