Karen Bass Plugs Hike in Film Tax Credit: ‘Let’s Bring Hollywood Back’

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In her State of the City address on Monday, Los Angeles Mayor Karen Bass emphasized the need to enhance the film and television tax credit, suggesting it’s high time we “welcome back Hollywood.

Throughout her speech, Bass primarily focused on discussing the critical financial predicament facing our city, homelessness, and the ongoing recovery efforts post-Palisades Fire. However, in conclusion, she reiterated her plea to California legislators, urging them to increase the state subsidy for the film industry from $330 million to a staggering three times that amount.

Bass emphasized that it’s crucial for us to reclaim our positions in the entertainment sector, referring to Hollywood as the cornerstone of our economy.

Gov. Gavin Newsom has proposed hiking the tax incentive to $750 million starting in July.

Currently, two proposals, SB 600 and AB 1138, are under consideration in the legislature, aiming to boost the existing rate and broaden its scope. These bills propose an increase in the rate from 20% to 35% of eligible production costs, while simultaneously extending the credit program to cover sitcoms, animation, and large-scale competition shows.

Listen up! The hearings for these bills are scheduled for Tuesday and Wednesday at the Capitol. Members from various labor unions in the industry have been encouraged to email their local representatives, demonstrating their backing. Additionally, the California Production Coalition – a group consisting of prop houses, soundstage owners, all under the supervision of the Motion Picture Association – has also urged support for the proposed expansion.

In her address, Bass mentioned that the city would contribute by reducing costs for filming on city grounds and simplifying the permit application procedure.

Following the speech, Bass’s office unveiled a budget plan with a provision for approximately 1,647 job cuts, referring to this action as their “final option.

Additionally, Bass announced her plans to visit Sacramento this week, aiming to lobby for increased funds for the city and solicit assistance with escalating financial obligations related to liabilities. The city is grappling with a nearly $1 billion budget deficit due to recurrent shortfalls in anticipated revenues. Previously, Newson had approved an authorization of $2.5 billion to aid Los Angeles County in its recovery from the fires that occurred in January.

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2025-04-22 02:16