California lawmakers are planning to make cinematic and television incentive in the state more profitable for individual production, while doubling the total size of the program.
At a press conference on Wednesday, legislators announced two accompanying projects – AB 1138 and SB 630 – to make the state program more competitive with other states. Many speakers noted that Georgia and New York had moved strongly to desalination of their tax discounts in order to attract the industry.
“We will not let this happen without a fight,” said a member of the House of Representatives, Isaac Brian, a sponsor of the association’s bill.
Alex Aguilar, director of local workers ’business, 724, said that he must advise members that if they do not find a job soon, they must replace the professions.
“We have a lot of people who lose their homes, and leave the state,” he said. “They no longer think there is a future in the entertainment industry.”
The governor of the state, Gavin News, said in October that he wanted to raise the program from $ 330 million annually to $ 750 million. At that time, no additional changes to the program.
Brian and Senator Bin Allen and the Council Rick Chavez presented the accompanying bills last week to “update” the program and “protect and restore jobs that leave California to other states.”
The bills were presented in the form of a deputy element. At the press conference, Zbur said the details are still being prepared between stakeholders in this field.
In its current form, California provides 20 % tax credit for most products. This is much lower than most other places. In Georgia and New York, the discount is 30 %. British Columbia announced a step last fall to raise the province of international production from 28 % to 36 %.
Zoron said that the bills would increase the percentage of the percentage in California, although it was not specified in the amount. He also said that the bills will expand the types of qualified products. The current program is limited to text TV programs and feature films, with the exception of animation, reality programs and games shows. TV programs are also excluded from 40 minutes from the episode.
In an interview last month, Zoron said he was still working for consensus between studios and trade unions.
“We know the extent of depression in the industry,” he said. “They come to me and tell me because of the loss of production, they are making thirdly to half of what they did two years ago.”
He pointed out that entertainment workers were also beaten by the Covid-19 pandemic and the last La fires.
He said: “We owe them to obtain this through the line and obtain an amount of $ 750 million credit and make changes in the program to ensure that they compete with other countries.”
The bills are expected to pass through the legislative body. But at the press conference, Zbur pointed out that there are some opposition in Sacramento from legislators who believe that increasing the tax credits of Hollywood take away from other programs. Facing this argument, he said that the program showed a great return on investment.
The Motion Picure Association launched the pressure efforts in December, the California Production Alliance, to defend more generous conditions for individual productions that qualify for government tax incentives.
Among the elements on its agenda are intended for the costs of “above the line” – the salaries of managers, actors, producers and writers who are currently excluded from the tax credit formula. Zbur indicated in the interview that this would be “more difficult to do,” and did not mention it at the press conference on Wednesday.
The mayor of Los Angeles Karen Bass, who helped create a state movie incentive in 2009 as a spokesperson for the association, indicated while they were concerned about the competition from Toronto.
“We have done tax credits, but we did not do it in a way that could continue,” said Bass. “Other states rushed and made a more responsive tax credit system.”
