Governor Gavin Newsom has proposed an increase of $30 million to its film and television tax credit program, in hopes of luring production back to the state. Currently, the state has a $75.7 billion budget surplus, and if Governor Newsom’s effort goes through, the film and TV industry will see some of it.
The tax credit is part of Newsom’s proposed $100 billion “California Roars Back” plan, which also includes $95 million to promote tourism in the state, and $600 stimulus checks to families making up to $75,000—families with dependents will receive an additional $500. The plan still needs approval from the state legislature, who needs to pass it by June 15, for adoption on July 1.
“This is an opportunity for those productions, TV and others, in places like Georgia, whose values don’t necessarily always align with the production crews, to consider coming back to the state of California,” said Newsom in a press conference on May 14, referencing Georgia’s new restrictive voting laws, which has led to talks of productions boycotting the state.
The $30 million will be added to the budget of the California Film Commission, which is in charge of receiving applications for tax credits from qualifying productions and distributing the money. This will increase the Commission’s budget to $360 million for the 2021–22 fiscal year. The $30 million will be a one-time boost. The Commission has an annual budget of $330 million.
According to Commission Executive Director Colleen Bell, the $30 million will be allocated specifically to television series who are relocating production to California. The Commission currently allocates $66 million a year to TV series that have relocated to California. It was recently announced that HBO Max’s “The Flight Attendant” and TBS’ “Chad” will begin filming in California; they were filmed in New York City and British Columbia, respectively.
“Governor Newsom’s announcement to expand the film and TV tax credit program is great news for California,” said Bell in a statement. “The additional $30 million in funding will be allocated to relocating TV series, which bring long-term, high-wage jobs and significant production spending to our state. To date, our tax credit program has welcomed 23 relocating series from other states and countries. The additional funding will enable us to grow that positive impact.”
California’s $330 million tax credit program was introduced in 2014, under then-governor Jerry Brown. It tripled the $100-million allotment that the film and television industry was receiving at the time.
Said Bell in a previous statement: “It takes significant effort for an established TV series to pack up and relocate production, so our success with such projects says a lot about the industry’s preference for working here in the Golden State.”
The California Film Commission takes applications for different types of productions on a rotating basis throughout the year. The next funding phase, for recurring television series and independent and non-independent feature films, will open applications in June and July, respectively. To date, it has distributed $2.4 billion in tax credits.