By Michaela Gordoni
On Wednesday, the California Senate’s Revenue and Taxation Committee passed a bill, SB630, that expands tax credit for in-state film and TV projects.
The bill is now on its way to the Senate for final consideration, Deadline reported Wednesday.
“First of all, this is part of California’s identity. If we let that slip away, we’re losing quite a bit of our of ourselves. And not only that, but if you watch film, you can notice the difference in quality. Stuff that’s produced here in California is better,” Committee Chair Jerry McNerney said.
On Tuesday, the bill’s “sister bill,” AB1138, passed the State Assembly’s Arts, Entertainment, Sports and Tourism Committee. Neither bill faced any opposition from committee officials.
As L.A. labor costs have grown, other states have pulled film business out of California with their cheaper locations and higher tax credits, but these bills seek to change that.
The bills would provide $750 million in annual tax incentives and would broaden program eligibility criteria. They would include incentives for animation, game shows and other reality and unscripted content, which are presently excluded. It would also increase the rebate above the current 20% by an unspecified amount, per National Law Review.
Hollywood workers sent over 100,000 letters to Sacramento in support of both bills.
“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 this industry,” Rebecca Rhine, Entertainment Union Coalition President and Directors Guild of America Western Executive Director, told Deadline earlier this week.
“We’re at a tipping point here…This funding and this legislation to make the program more competitive is so critical to working families in California,” she said.
The Entertainment Union Coalition led the initiative as part of its “Keep California Rolling” campaign.
Related: Gov. Newsom Announces Tax Credit Extension to Bring Movie Productions Back to California
Part of the letter the workers sent reads, “I don’t want to change careers, and I don’t want to leave the state. What I want is the opportunity to work where I live and to continue to be a part of the most vibrant creative community in the world…When our Industry thrives, California thrives.”
Amidst this news, California Governor Gavin Newsom also pledged to double the state’s current tax credit cap. This would give relief to the state’s entertainment industry after the recent waves in entertainment, from COVID-19 to the SAG-AFTRA strikes and wildfires.
Read Next: Hollywood Teeters on Collapse as Workers Call for More Tax Credits
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