California Film Credit Expansion Steag is removed as a dollar figure
The expansion of the Californian film and TV tax credit, of which stakeholders in the industry claim that it is the key to protecting jobs in the State, was a snag on Friday because legislative references in Bill Language removed to raising the program pussy to $ 750 million.
Gavin Newsom government promised last fall to increase the program from $ 330 million to $ 750 million. Two accounts, AB 1138 and SB 630, have worked its way through the legislative process to make those increase and other changes to make the program more attractive to producers.
On Friday the accounts went through the credit committees in the meeting and Senate, but the references to $ 750 million were removed. That dollar figure could be added later in the budget process, but for now it is not guaranteed.
“We are certainly disappointed in this direction, and it is something we are going back to when budget negotiations start to warm up,” said Senator Ben Allen who wrote the senate version of the bill. “In recent years we have looked at the decline of this critical industry in real time and we cannot stay on the sidelines. This program must be modernized if we want to keep California as the global Hub of Entertainment.”
The removal of the dollar figure can turn out to be a hiccup in the process. Supporters from the industry are convinced that the expansion will be approved.
Assemblyman Rick Chavez Zbur, who wrote the assembly version, said that although nothing is 100% guaranteed, he believes that there is broad support in both houses for the increase.
“I think there is very, very strong support for the outcome to stay $ 750 million,” said Zbur. “It was a good day. We took the bill out.”
The changes were made when the committees voted over hundreds of bills, which must be transmitted from the “tension file” to get to the ground.
Newsom confirmed support for the increase of $ 750 million last week, after having given a revised budget proposal to the legislative power.
“We have to perform things,” he said.
The legislative power must accept a budget by 15 June, although some financing items can be tackled later than those through trailer accounts.
Dozens of Entertainment Union representatives attended a series of hearings in Sacramento this spring to insist the expansion. In testimonies for the meeting and the senate committees, they have argued that the state should do more to compete with attractive stimulation programs in other states and abroad.
As currently written, the legislation would increase the amount of the tax credit from 20% of the qualified costs to 35%. That would increase to 40% for productions outside the Los Angeles area, or in economically depressive areas of Los Angeles.
The program would also expand with animation films and TV programs, sitcoms and large-scale competition shows. Extra changes are expected to be eligible for scoring music.
