Should Gov. Gavin Newsom sign legislation, $150 million of that total sum would be allocated to new soundstage construction
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The California state legislature reviewed a new bill Sunday that would increase the state’s film and television tax credits program by $330 million, with $150 million of that being allocated to the construction of new soundstages in the state, according to multiple media reports.
If the bill is signed into law by Gov. Gavin Newsom, it would double the current $330 million that California gives Hollywood in film and TV tax credits each year.
For the $150 million portion earmarked for soundstage construction credits, productions will be required to submit a diversity plan to the state that “shall include goals that are broadly reflective of California’s population, in terms of race and gender,” per the proposed bill.
The increase to the film and TV tax incentive program’s budget has been an ongoing discussion over the past few months that began with a much smaller bump, when Gov. Newsom said in May he would add $30 million to the pot due to California’s $75 billion budget surplus. In June, the state legislature started considering boosting that addition to $180 million over two years.
The proposed legislation that brings the total addition to the film and TV tax credit program to $330 million, which is expected to pass in both houses of the California state legislature and then be signed by Gov. Newsom, is sponsored by Senator Anthony Portantino and assembly members Wendy Carrillo and Autumn Burke.
The goal of California’s film and TV tax credit program is to encourage more productions to relocate their operations to the state, or begin their from Day 1, in an attempt to lower unemployment and boost the state’s economy. However, the program does not currently have enough funds to support all of the movies and shows that would like to take advantage of the incentives. This new legislation that would increase the total by $330 million would go a long way towards ensuring more productions are able to enjoy the program.
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