Much has been said about production moving away from California and even out of the country over the last few years. Many put it on rising costs and contraction related to streaming overtaking broadcast and cable, the COVID-19 pandemic, and the 2023 strikes, but one of the biggest problems is the lack of tax benefits productions in California are given, particularly in Los Angeles, the supposed entertainment hub of the world. As of now, the state caps its film tax credit program at $330 million annually. Compared to Georgia, which has no cap and spent more than $1 billion in 2024 subsidizing production, or New York, which offers $700 million in tax breaks annually, California’s financial incentives are paltry at best.
However, Governor Newsom is working to change that. In October 2024, the Democrat announced he and others, including Los Angeles Mayor Karen Bass, would be pushing to more than double the current allotment, bringing the cap up to $750 million a year. At the time, he described the lack of California production as a “legitimate crisis” and implored an action that was “meaningful, not just intentional.” Despite the appeal, in the aftermath of the Southern California wildfires and the money that will need to be spent rebuilding, legislators in Sacramento may need further convincing as to why such a huge block of funds should be put aside for the arts.
Leading this effort, the Entertainment Union Coalition — made up of the WGAW, DGA, SAG-AFTRA, Teamster Local 399, AFM, California IATSE Council, and LIUNA Local 724 — announced the launch of the “Keep California Rolling” campaign this past Thursday, February 27. Their intention is to both gather support for protecting, preserving, and creating jobs in the film and television industry across all of California and to educate new legislators, budget committee members, and other elected officials to guarantee they vote for the increase in the 2025-2026 budget that’ll be approved this summer.
Beginning this upcoming week, the EUC will commence its lobbying efforts, but it’s not the only group trying to shine a light on this cause. Julie Plec, co-creator of “The Vampire Diaries” and “The Girls on the Bus,” and Sarah Adina Smith, an indie filmmaker and one of the directors on HBO’s upcoming “Knight of the Seven Kingdoms,” have come together to draft the “Stay in L.A.” petition on January 23. Their proposal is to call for “emergency measures” to be taken in combatting California production stagnation and (per The Hollywood Reporter) have put together a list of steps individuals can take to promote this initiative. They read as follows:
1. Support Gov. Gavin Newsom’s $750 million budget cap raise on the incentive and urge him to temporarily uncap the incentive for three years in L.A. County as part of efforts to rebuild after the fires.
2. Educate legislators in Sacramento that a more competitive incentive is about job creation and isn’t simply a “corporate handout.” As of August, the unemployment rate in the film and TV sector reached 12.5 percent, marking the industry’s highest August unemployment rate since at least 2000, excluding the pandemic period. This rate is nearly triple the national average.
3. Raise the tax incentive amount to 30 percent for both films and television shows. This number is the bare minimum to make California competitive. Offer an additional 5 percent for any film below $10 million to encourage more independent films to shoot in California.
4. Support a bill funding postproduction that is not contingent upon shooting in state. New York has this, the U.K. has this … and it’s why their postproduction businesses are booming and L.A.’s is hurting. The postproduction carve-out should include music for film and TV scores, too.
5. Consider a new bill targeting commercial and music video production, which has also plummeted. Shortform production is how many cast and crewmembers make ends meet between TV or film gigs.
6. Lift restrictions on shooting outside and in public spaces in L.A. (emulating NYC’s successful program) and offer a temporary reduction in permit fees in conjunction with loosening up notification requirements to reduce FilmLA’s staffing costs.
7. Neighborhood councils can create film-friendly corridors and residential zones. The county can offer discounted property taxes for all who participate.
8. The city and county can offer unused or underused property as free “base camps” for production. Create an easy-to-use map of all these areas.
9. Waive or defer L.A. city tax on productions and consider a city ordinance temporarily capping location fees to combat price gouging and to make it easier for productions to afford to shoot.
10. Perhaps most crucially, studios and streamers must do their part by pledging to shoot more in L.A. County, demonstrating a commitment to rebuilding after the fires.
To sign Plec and Smith’s “Stay in L.A.” petition and learn more, click here.
To learn more about the “Keep California Rolling” campaign and how you can help, click here.
