California Lawmakers Move to Hike Film Credit to 35% for L.A. Shoots, Include Animation and Sitcoms

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California legislators are proposing an enhancement of financial compensation for film and television productions supported by subsidies in the Los Angeles region, up to 35%. Additionally, they aim to broaden the types of productions eligible for these incentives.

The present system offers a 20% or 25% reduction for live-action movies and scripted television series. As per the proposed legislative language submitted on Tuesday evening, the eligibility will be broadened to include animated films and TV programs, sitcoms, and major competition shows.

Governor Gavin Newsom pledged in the autumn to boost the program’s annual budget from $330 million to $750 million, given the challenging dip faced by California’s film industry workforce.

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Last fall, Governor Gavin Newsom vowed to escalate the program’s yearly funding from $330 million to $750 million due to the tough times experienced by California’s movie production workforce.

Last month, a piece of legislation, SB 630, was put forward to enact an increase. As a movie enthusiast, I can relate to the Motion Picture Association’s stance that this program should be made more generous on a project-by-project basis in order for our state to remain competitive with others.

In contrast, California’s top rivals, Georgia and New York, provide a 30% refund and consider the salaries of actors, directors, producers, and screenwriters (often referred to as “above the line” professionals) as eligible expenses.

On Tuesday, lawmakers proposed a revised version of SB 630, aiming to boost the rebate to 35% for expenses related to wages and various costs within the Los Angeles area. This region encompasses sites that lie within a 30-mile radius of Beverly and La Cienega boulevards, a historic hub of the Association of Motion Picture and Television Producers, as well as additional locations such as Castaic, Pomona, and the Ontario airport.

As a passionate viewer, I appreciate the current regulations that restrict TV shows to those with episodes of at least 40 minutes, except for sitcoms and other half-hour shows. If SB 630 gets the green light, it would be fantastic to see the threshold reduced to 20 minutes, opening up a world where even sitcoms could meet the qualifications.

The half-hour TV series titled “Veep” became eligible for a potential $20 million in incentives during its last three seasons, however, this was possible due to the show’s move from Maryland.

As a devoted enthusiast, I’m thrilled to share that the proposed legislation expands eligibility for our beloved program. It now includes animated films, series, and shorts with a minimum production budget of $1 million. Additionally, large-scale competition programs will qualify too, again, provided they meet the same $1 million threshold in budget. However, it’s important to note that this doesn’t encompass game shows, reality shows, talk shows, or documentaries.

The proposed legislation includes a 5% bonus for productions filmed in an “economic opportunity zone”. Additionally, it relaxes eligibility criteria for a different incentive specifically for soundstage construction. At present, these benefits have been exclusively granted to one project: the extension of Universal’s studio lot.

A hearing for the proposed expansion will take place before the State Senate committee on Wednesday. Senators Ben Allen, along with Assemblymen Isaac Bryan and Rick Chavez Zbur, are spearheading the related legislation. Furthermore, additional authors have been added to the amendment.

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2025-03-26 20:19