California bills aimed at modernizing film, TV tax credit program gain support from LA supervisors

LOS ANGELES (CNS) -- The Los Angeles County Board of Supervisors Tuesday affirmed its support of two state bills that would modernize and expand the Film and Television Tax Credit Program in hopes of halting runaway production.

Assembly Bill 1138 and Senate Bill 630 were introduced by Assemblyman Rick Chavez Zbur, D-Hollywood, and Sen. Ben Allen, D-El Segundo, in conjunction with Assemblyman Isaac Bryan, D-Los Angeles.

The bills would modify the credit program's requirements through an array of moves including raising the base tax credit rate from 20% to 35%, increasing incentives for independent productions and expanding the definition of "Qualified Motion Picture."

The bills would also grant the California Film Commission with more flexibility to move tax credit money across different categories to meet demands.

These bills came in response to Gov. Gavin Newsom's proposal to increase the allocation for the state's incentive program from $330 million to $750 million, beginning July 1.

"The film and television industry plays a vital role in the economy and culture of Los Angeles County, serving as a global hub for entertainment production. However, California's iconic film and television sector is currently facing an unprecedented crisis, with a significant drop in jobs and production activity," Supervisors Kathryn Barger and Lindsey Horvath wrote in their motion calling on the county to support the proposed state legislation.

"Increased competition from other states and countries, which are aggressively vying for production opportunities through attractive incentives, has contributed to this decline."

The motion cites data indicating that productions not receiving tax credits led to loss in production spending as filming occurred in other states.

"Support for AB 1138 and SB 630 continues the county's longstanding support for the film and television industry, a major economic driver for our region," Tuesday's motion stated.

"The bills will ensure the retention and expansion of living wage jobs in the county as well as the small business that support production."