Film tax credits – Introduction
In sunny California, the state’s film tax credits are helping to secure its place as a leader in the film and television industry.
On July 10, 2023, Governor Gavin Newsom signed a new law that extends and expands California’s Film and TV Tax Credit Program 3.0.
Originally set to expire in June 2025, the program will now run until June 2030, under the new name “Program 4.0”.
This program, which offers $330 million a year in tax credits, has already started attracting new productions to California.
The Impact of Program 4.0
With the launch of Program 4.0, California has become an even more appealing destination for film and television productions.
Colleen Bell, the Director of the California Film Commission, noted that by mid-2024, the state had already welcomed 12 new TV series and one relocating series.
One of the major projects drawn to California was “Suits: L.A.” by Universal Content Productions LLC, which was awarded a $12 million tax credit.
The show’s shift from Canada to California is expected to inject $50.7 million into the state’s economy and create around 2,600 jobs.
Why Film Tax Credits Matter
California’s move to extend its film tax credits isn’t just about keeping the state’s film industry alive; it’s about ensuring its dominance in a competitive market.
Since 2021, 17 other states have introduced or expanded their own film tax incentive programs. By supporting local productions, states can encourage economic growth, create jobs, and even boost tourism.
California, recognising the growing competition, made significant changes in Program 4.0. The most notable change is that the tax credits are now refundable, which makes them more attractive to filmmakers.
Additionally, the program aims to support people from underserved communities by requiring projects to submit diversity, equity, inclusion, and accessibility (DEIA) workplans.
Projects must also show a commitment to hiring individuals who reflect the diversity of California’s population.
A Boost for California’s Economy
The film and television industry in California provides more than 700,000 jobs and generates nearly $70 billion in wages.
It also brings in billions of dollars in production spending. This makes it clear why the state is so invested in keeping film productions in California.
The tax credits aren’t just about supporting big-budget films; they’re a key part of the state’s economic strategy.
In September 2024, the California Film Commission awarded $51.6 million in tax credits to 18 projects, including a film about singer Janis Joplin.
Shailene Woodley, one of the producers and stars of the Janis Joplin biopic, expressed her gratitude to the California Film Commission, saying that California was the best place to capture Janis’s life story authentically.
Film tax credits – Conclusion
California’s Film and TV Tax Credit Program 4.0 has proven to be a valuable tool for keeping the state at the forefront of the entertainment industry.
By offering generous, refundable tax credits and promoting diversity within productions, California is ensuring that it remains a top choice for filmmakers around the world.
Final Thoughts
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