California to allocate $750 million in tax breaks for film and TV

California lawmakers have agreed to $750 million in annual funding to support film and television production. This is reported by UNN with reference to Variety.

Details

The leadership of the Senate and Assembly agreed with Governor Gavin Newsom's initiative to expand the program, which until now amounted to $330 million. According to sources, official approval is expected on Friday during the vote on the relevant bill.

Newsom proposed this expansion back in October last year in response to the decline in production in the industry. It was one of his key priorities in the budget cycle, although the exact amount remained uncertain until the finalization of the budget agreement this week.

The California Film Commission predicts that additional funding will increase the number of jobs by 40–50%, which is approximately 4,400 to 5,500 new jobs in the film industry.

Bill AB 1138, which accompanies the program, should make it even more generous. It increases the basic tax credit for projects from 20% to 35%, and in some cases to 40% for filming outside of Los Angeles.

The program also extends to sitcoms, animation and large competitive shows.

Additionally

During the discussion of the document, provisions were introduced to support disadvantaged communities. The initial idea of a 5% surcharge for filming in poor areas was deemed unsuitable. Instead, a 2% bonus is provided for companies that take on one to four interns from programs focused on traditionally marginalized populations.

In addition, "the bill also aims to open training programs for additional non-profit organizations, starting next year." At the same time, it is especially emphasized that "trainees should not displace experienced workers", which is an important condition for industry unions.

The existing program already requires reporting on the racial, ethnic and gender composition of employees. The new amendments add postal codes to assess geographical diversity, as well as veteran status.

It is expected that AB 1138 will be approved by July 4 and will take effect immediately.

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