By Gavin Boyle
As California seeks to save itself from losing control of the entertainment industry, Hollywood workers have shown their support with over 100,000 letters hitting lawmakers’ offices as they consider expanding tax credits.
“The letters are really the indication of the depth and commitment to moving this forward, to letting our elected officials know how important this is to our state and to the working people in their industry,” Rebecca Thine, the Entertainment Union Coalition President and Directors Guild of America Western Executive Director, told Deadline. “We’re at a tipping point here…This funding and this legislation to make the program more competitive is critical to working families in California.”
This outpouring of support comes as Hollywood has experienced a mass exodus of production in recent years as the price to do business in the state has soared. At the same time, other states have offered increasing lucrative programs to lower the cost of production for those migrating away from L.A.
Kentucky, Tennessee, Nevada, North Carolina and Texas are among the states that have greatly expanded their film and TV tax credits since productions began looking for new locations to shoot.
“We’re ready for the big streamers to come and shoot at the studio when our stages are finished, and if things like COVID hits, or a big strike hits, we’re ready to do concerts or weddings,” said Robert Rippberger, the owner of White Lightning Studios, a production facility located in North Carolina. “We’re ready to do events. All those things are on the table.”
Related: California Can’t Keep Business in Hollywood as Other States, Countries Swoop In
California, however, is not going down without a fight, and lawmakers are placing an increasing focus on lowering the cost of production before it loses its status as the production capital of the world.
“This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,” said Noelle Stehman, a member of the “Stay in L.A.” campaign.
Multiple state legislators have now stepped up to introduce new bills that would help tackle this problem and are urging their colleagues to treat this issue as a crisis. Meanwhile, California Governor Gavin Newsom is working to tackle the problem as well and provide more funding for tax credits.
In 2022, he expanded the state’s tax credit system to $330 million annually through 2030, he is now looking to more than double the system to $750 million per year, which would make it the second-highest incentive program in the country, only behind Georgia which does not currently have a cap in funding.
As other states look to capitalize on the Hollywood exodus, California’s incentives will have to really ramp up in order to draw the industry back. While it appears it could still maintain its place at the top of the production world, it will take a colossal effort to save L.A. from collapsing.
Read Next: Is Hollywood About to Crash? Experts Raise Alarm
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