California Lawmakers Push to Expand Film Tax Credit Amid Industry Challenges

The proposed legislation will be referred to policy committees in the coming weeks

California lawmakers introduced new legislation aimed at expanding and modernizing the state’s Film & Television Tax Credit Program, citing economic challenges in the entertainment industry and increased competition from other states.

Assemblymember Rick Chavez Zbur (D-Hollywood), State Senator Ben Allen (D-Hollywood), and Assemblymember Isaac Bryan (D-Culver City) unveiled Assembly Bill 1138 and Senate Bill 630 at a press conference in Los Angeles. The bills propose strengthening the state’s film tax incentives to retain productions and jobs, as other states, such as New York, offer increasingly competitive tax breaks to lure away film and television projects.

Los Angeles Mayor Karen Bass joined lawmakers, union leaders, and industry representatives in support of the proposed legislation, emphasizing the need to maintain the state’s position as a leader in film and television production.

“California needs to pull out of its complacency to reignite our critical entertainment industry,” Allen said in a statement. “While we have the best entertainment workforce and locations, our policies have failed to keep up with rising competition that has pulled production out of state for years.”

Zbur pointed to a decline in production, exacerbated by the COVID-19 pandemic, increased incentives from competing states, and the impact of recent wildfires in Los Angeles. “Folks who previously earned good livings in the film and television industry are hurting,” he said. “These bills are not about red carpets and premieres. They are about the thousands of workers who are unemployed or underemployed.”

The entertainment industry accounts for nearly 200,000 direct jobs in California and generates billions of dollars in economic activity. Supporters of the tax credit expansion argue that bolstering incentives will help keep jobs in the state and revitalize an industry that has been a key economic driver.

The proposed legislation will be referred to policy committees in the coming weeks.

in Hard, News
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