June 27 (Reuters) - Hollywood's home state of California
will more than double annual tax incentives for film and
television production to $750 million under a measure passed by
the Democratic-led legislature on Friday.
The increase from the current $330 million was approved as
part of a broader tax bill that is expected to be signed into
law by Governor Gavin Newsom in the coming days.
Democrat Newsom had advocated for the boost, a step to help
reverse a years-long exodus of production from California to
places such as Britain, Canada and other U.S. states that offer
generous tax credits and rebates.
Producers, directors, actors and behind-the-scenes workers
have warned lawmakers that Hollywood was at risk of becoming the
next Detroit, the automaking capital devastated by overseas
competition, if current trends continued.
Permitting data showed production in Los Angeles, the
location of major studios including Walt Disney ( DIS ) and
Netflix ( NFLX ), fell to the second-lowest level on record in
2024. California has lost more than 17,000 jobs since 2022 from
its declining share of the entertainment industry, according to
union estimates.
Producer Uri Singer said he shot three films in New York to
take advantage of its tax incentives. He received a California
tax credit to shoot his current project, a horror flick called
"Corporate Retreat," in Los Angeles.
"You can get such good cast and crew that are available that
makes shooting in L.A. financially better," he said. "Besides
that, creatively you find here anyone you want, and if you need
another crane, within an hour you have a crane."
Plus, "the crew is happy because they go home every day,"
Singer added.
Local advocates applauded California's expansion of tax
incentives, though they said more needs to be done.
Writer Alexandra Pechman, an organzier of a "Stay in LA"
campaign by Hollywood workers, called on Hollywood studios to
commit to a specific amount of spending in California to support
creative workers.
"It's time for the studios and streamers to do their part to
turn this win into real change for all of us," Pechman said.
Industry supporters also are pushing for federal tax
incentives to keep filming in the United States.
Republican President Donald Trump has offered a different
way to address the issue. Trump said in May that he had
authorized government agencies to impose a 100% tariff on movies
produced overseas. The movie tariff has not been implemented.