Film Workers to Rally Sunday in Support of Doubling California Tax Incentive: ‘There’s Been No Work’

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Approximately 1,500 members of the film and television workforce plan to demonstrate in Los Angeles over the weekend, advocating for the restoration of positions that were eliminated due to a decrease in production. The industry is still grappling with a lull in content creation.

Leaders from both unions and businesses are advocating for new laws to significantly increase California‘s production tax credit, potentially doubling it from $330 million to $750 million. Additionally, they aim to expand the program to accommodate various types of projects such as sitcoms, animation, and other forms of entertainment. Governor Gavin Newsom first suggested this change in October, but the legislation must navigate through a legislature dealing with multiple pressing issues before it can be passed.

Wes Bailey, CEO of SirReel Studio Services, emphasizes that we need to continue pushing our politicians to ensure they follow through with this until it’s completed,” said he, as his company organizes a rally on Sunday afternoon in Sun Valley.

Production jobs in California, New York, and Georgia are not thriving as they once were. The Bureau of Labor Statistics reports that none of these three major production hubs – California, New York, and Georgia – have fully bounced back from the downturn that started before the 2023 strikes. In simpler terms, all three states are still grappling with a significant reduction in manufacturing jobs, which began prior to the 2023 labor disputes.

California, being the country’s biggest production center, has been significantly affected by the economic downturn.

In 2022, it was clear that our industry was about to undergo a major transformation. The way studios were handling the streaming wars wasn’t something that could continue indefinitely, as expressed by Pam Elyea, Vice President of History for Hire, a prop rental company based in North Hollywood. What we didn’t anticipate was how prolonged this difficult period would be.

Elyea belongs to the California Production Coalition, which is an alliance of film studios and related businesses that collaborate with the Motion Picture Association, a representative body for the seven main movie studios.

One of several coalitions, such as California United, Keep California Rolling, and Stay in L.A., is advocating legislators to kickstart the industry. The Stay in L.A. movement emerged following the destructive fires in January, and it has proposed removing the film incentive cap for a three-year period to aid in the recovery process.

Marie Dunaway, an L.A. producer, expressed her concern, stating, “We urgently need to understand the current situation here in Los Angeles.” She highlighted that the industry has also been impacted by the pandemic and strikes, and now is a critical time for the public, government, and corporate leaders to grasp the importance of supporting and preserving the L.A. community.

Last week, Senator Ben Allen and other legislators revealed updates to SB 630, a proposal aiming to increase the state’s incentive program. Their goal is to boost the tax incentive offered from 20% to 35% for productions based in Los Angeles, with an extra 5% (amounting to 40%) going to productions outside of LA or economically disadvantaged areas within LA.

The bill remains under discussion since MPA heads and union chiefs are still ironing out details on certain specifics. Specifically, the MPA aims to scrap the rule mandating that 75% of a project must be shot in California for it to qualify. However, unions have expressed opposition, contending that this incentive should be utilized to preserve as many local jobs in California as feasible rather than supporting productions primarily filmed elsewhere or abroad with subsidies.

The California Production Coalition is additionally advocating for the inclusion of advertisements, editing after filming, and creating musical background scores within the incentive program.

“I think we’re getting close to a deal,” Allen said Friday.

He expressed hope that the expansion would be accepted by the Legislature, but made it clear that it’s not a certainty.

Allen, representing D-Santa Monica, stated that global situations are remarkably uncertain. It’s crucial for us to take action so that our peers across the state can appreciate the value and advantage of what we’re doing.

As a passionate film enthusiast, I’ve been closely following the developments surrounding the bill in question. Over the past few weeks, I’ve seen legislative committees convene not once but twice, providing a platform for heart-wrenching testimonies from fellow film industry workers. These individuals have shared their struggles, recounting tales of losing their health insurance or being compelled to dip into their retirement savings due to the challenges they face in this field.

Cecilia Hyun, a film editor, stated that she hasn’t found any work since 2023,” explained Cecilia. “As a result, my home is temporarily not making payments due to difficulties. I saved up for emergencies for two years, but unfortunately, those funds have run out now.

Simultaneously, lawmakers acknowledge the significance of the state’s leading industry while voicing worries over budget limitations. They’ve pointed out that the Media Production Association (MPA) doesn’t just bolster productions in our own backyard but also provides incentives for filmmaking in Georgia and New York as well.

Senator Christopher Cabaldon, D-West Sacramento, questioned, “What measures are being taken to prevent us from being deceived?

Assemblyman Alex Lee, a Democrat from San Jose, stated during an interview that the financial situation has become increasingly challenging since autumn, considering the fires and decisions made by the Trump administration.

He stated that the federal government is heading towards another economic downturn. In essence, our conversations revolve around finding ways to preserve Medicaid for low-income individuals and ensuring school lunches are funded. The situation is so dire that these discussions are necessary. Simultaneously, we’re contemplating increasing a corporate tax reduction by twice its current size.

As a passionate cinephile, I wholeheartedly agree with Rebecca Rhine, the President of the Entertainment Union Coalition, on her point that this incentive is a game-changer for tourism and community growth. It’s all about creating quality employment opportunities that ensure fair compensation.

As a film enthusiast, I’m not considering this as some kind of favor; instead, it’s a mutually beneficial arrangement. I strongly believe that the state stands to gain something truly valuable from this deal. I’m optimistic that the majority of legislators will align with our perspective on this matter.

New York plans to boost its annual film subsidy from $700 million to $800 million, responding to its own economic slump while maintaining its status as the second-busiest filming location in the nation. Despite Georgia’s unlimited incentive program, production levels have also dropped there.

As a cinephile critiquing the cinematic landscape, I can’t help but notice that even ardent advocates for Hollywood’s growth in California acknowledge that more resources are essential to reestablish thriving job markets.

Pamala Buzick Kim, co-founder of Stay in L.A., expressed that while this solution may not be the ultimate game-changer for the industry, it does put us in a position where we are included in the discussion and can become more competitive.

In their ongoing negotiations, there seems to be no mention of proposals exceeding $750 million or even removing the ceiling.

Rhine stated that our lives are shaped by certain limitations, which we work within. If we had more resources at our disposal, we’d certainly use them. However, we won’t let the pursuit of perfection hinder us from achieving what’s already good.

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2025-04-05 00:17