Hollywood as Gov. Gavin Newsom prepares to double California’s film and television incentive program from $330 million to $750 million annually in tax breaks for producers who film in the state. A new coalition is forming to aggressively lobby to keep Hollywood in Hollywood.
The group, dubbed the California Production Coalition, includes studio operators such as Hudson Pacific Properties and Raleigh Studios, payroll companies such as Entertainment Partners and Lapbook, film equipment providers, and major studio trade organizations. It is made up of more than 30 companies and organizations, including movies. Association.
It launched an independent poll commissioned to make the case that voters in the state also care about keeping the film industry in Hollywood. And the arrangement arrives on the same day that the California Film Commission touted a $20 million tax credit to entice Season 2 of Apple TV+’s Bad Monkey to relocate from Florida.
“MPA and its members, in collaboration with California businesses, highlight how our creative community can expand meaningful contributions and build a stronger foundation for film and television production in the state. We are proud to be able to do this,” said Charles Rivkin, executive director of the MPA organization. Its members include Disney, Universal, Sony, Paramount, Netflix, and Amazon MGM Studios.
The new production coalition was formed in response to an exodus of Hollywood projects out of state (and out of the country) in search of tax credit incentives that provide the highest returns for producers. At the same time, overall production activity has declined, creating a ripple effect impacting the prop houses, studio service operators, and studio premises that make up many of the entertainment industry’s employees.
According to industry tracker ProdPro, global production in the third quarter of 2024 was down about 17% compared to the same period in 2022 (last year was excluded due to a double strike of screenwriters and actors). ). And in Los Angeles County, production in the third quarter was down 5% from a year earlier, with permitting office FilmLA describing it as the “slowest” quarter of the year.
In the wake of those headlines and alarmed industry figures, Newsom jetted from Sacramento to Los Angeles’ Raleigh Studios in late October to join Mayor Karen Bass and announce a plan to halt the production leak. “Expanding this program will keep productions domestic, create thousands of good-paying jobs, and strengthen our community’s vital connections to our state’s iconic film and television industry. “We can do that,” Newsom said.
Interestingly, a survey commissioned by the California Production Coalition has a slide promoting the idea that California voters support tax credits that include additional programming, with a majority of voters sampled in the poll respondents said they support game shows like “Jeopardy!” and “Competition.” Shows like American Ninja Warrior, talk shows, and reality shows should also be considered for tax deductions. Reality TV production has been particularly hard hit in LA, with filming numbers down about 56% in the last quarter compared to a year ago, according to FilmLA.
“California’s film industry must not be taken for granted and cannot compete in the global entertainment industry without a competitive tax credit program,” said Pam Elyea, owner of equipment rental company History for Hire. Don’t expect to be able to maintain it.” “The California Production Coalition was founded by a group of small business owners, studios, and professional organizations with deep roots in our local communities to financially nourish our California roots and grow them stronger and bigger. Let’s do it.”
“Today, we stand at a time when California’s dominance in entertainment is being tested by other states and countries,” said Kabon Elhami, coalition member and CEO of Camtech Motion Picture Camera Systems. , we are witnessing the challenges facing the industry,” he added. Thousands of companies like ours thrive in a thriving production environment. It is imperative that we come together now to ensure that California remains the center of the film industry. ”
