State lawmakers have approved a series of modest changes intended to bolster California’s film and TV tax credit program.
Among the key revisions, independent filmmakers would be exempted from the $5 million state corporate tax credit cap that was approved earlier this year as part of Gov. Gavin Newsom’s state budget.
Film industry advocates lobbied hard for a carve-out, saying the cap would undercut gains made under the current film and TV tax credit program at a time when Hollywood has been reeling from job losses.
The exemption is a compromise. Film industry advocates were hoping all types of producers would be exempt from the corporate tax cap.
The bill includes other changes intended to help Hollywood, such as allowing companies to carry forward older tax credits for up to 15 years (the old limit was nine) and reducing the discount they are charged when they opt to seek a cash refund on unused credits.
Producers will also be able to collect their refund money more quickly — within two years instead of five.
California offers tax credits of up to 35% on qualified expenses, which can be applied to any tax liabilities the production companies have in the state. The program allocates $750 million annually in film and TV tax breaks.
The budget trailer bill was introduced to the Senate on Friday by Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus and Senator Ben Allen (D-Santa Monica).
The new cap, issued by Gov. Newsom, would have undermined the “competitiveness” of the current California Film and Television Jobs Program, said the Entertainment Union Coalition, an advocacy group that supports the bill. But with these new modifications, the group — which represents the Directors Guild, SAG-AFTRA, IATSE and more — said the program will be able to continue to “support the fragile recovery of our industry here in California.”
“Most importantly, we want to recognize the major role our members played in today’s success as advocates for their industry in California,” Rebecca Rhine, the coalition’s president, said in a statement. “They sent an unprecedented 450,000 letters to the California legislature, making clear the negative impact that SB 122 [the new cap] would have on their livelihoods, their families, and their communities.”
Over the program’s first full year in its expanded $750-million form, the California Film Commission says it delivered $6.6 billion in direct production spending and $4.3 billion in qualified expenditures, supporting nearly 35,000 cast and crew jobs across 6,630 filming days statewide.
The bill cleared the Assembly floor by a vote of 68-2, with the Senate approving its companion measure by a vote of 32 in favor, 8 against the same day. It now awaits Gov. Newsom’s signature.
“It’s a good day that we took steps to strengthen the program and while we have to do more next year, this was a crucial first step,” Zbur said in an interview.
Zbur said he believes everyone in the state’s film and TV tax credit program should have been exempted from the corporate tax credit cap and he plans to look at that within the context of next year’s budget.
“There were budget implications to doing that, so we really did all the things that are viable to do in this legislative session,” Zbur said.
State lawmakers have approved a series of modest changes intended to bolster California’s film and TV tax credit program.
Among the key revisions, independent filmmakers would be exempted from the $5 million state corporate tax credit cap that was approved earlier this year as part of Gov. Gavin Newsom’s state budget.
Film industry advocates lobbied hard for a carve-out, saying the cap would undercut gains made under the current film and TV tax credit program at a time when Hollywood has been reeling from job losses.
The exemption is a compromise. Film industry advocates were hoping all types of producers would be exempt from the corporate tax cap.
The bill includes other changes intended to help Hollywood, such as allowing companies to carry forward older tax credits for up to 15 years (the old limit was nine) and reducing the discount they are charged when they opt to seek a cash refund on unused credits.
Producers will also be able to collect their refund money more quickly — within two years instead of five.
California offers tax credits of up to 35% on qualified expenses, which can be applied to any tax liabilities the production companies have in the state. The program allocates $750 million annually in film and TV tax breaks.
The budget trailer bill was introduced to the Senate on Friday by Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus and Senator Ben Allen (D-Santa Monica).
The new cap, issued by Gov. Newsom, would have undermined the “competitiveness” of the current California Film and Television Jobs Program, said the Entertainment Union Coalition, an advocacy group that supports the bill. But with these new modifications, the group — which represents the Directors Guild, SAG-AFTRA, IATSE and more — said the program will be able to continue to “support the fragile recovery of our industry here in California.”
“Most importantly, we want to recognize the major role our members played in today’s success as advocates for their industry in California,” Rebecca Rhine, the coalition’s president, said in a statement. “They sent an unprecedented 450,000 letters to the California legislature, making clear the negative impact that SB 122 [the new cap] would have on their livelihoods, their families, and their communities.”
Over the program’s first full year in its expanded $750-million form, the California Film Commission says it delivered $6.6 billion in direct production spending and $4.3 billion in qualified expenditures, supporting nearly 35,000 cast and crew jobs across 6,630 filming days statewide.
The bill cleared the Assembly floor by a vote of 68-2, with the Senate approving its companion measure by a vote of 32 in favor, 8 against the same day. It now awaits Gov. Newsom’s signature.
“It’s a good day that we took steps to strengthen the program and while we have to do more next year, this was a crucial first step,” Zbur said in an interview.
Zbur said he believes everyone in the state’s film and TV tax credit program should have been exempted from the corporate tax credit cap and he plans to look at that within the context of next year’s budget.
“There were budget implications to doing that, so we really did all the things that are viable to do in this legislative session,” Zbur said.
State lawmakers have approved a series of modest changes intended to bolster California’s film and TV tax credit program.
Among the key revisions, independent filmmakers would be exempted from the $5 million state corporate tax credit cap that was approved earlier this year as part of Gov. Gavin Newsom’s state budget.
Film industry advocates lobbied hard for a carve-out, saying the cap would undercut gains made under the current film and TV tax credit program at a time when Hollywood has been reeling from job losses.
The exemption is a compromise. Film industry advocates were hoping all types of producers would be exempt from the corporate tax cap.
The bill includes other changes intended to help Hollywood, such as allowing companies to carry forward older tax credits for up to 15 years (the old limit was nine) and reducing the discount they are charged when they opt to seek a cash refund on unused credits.
Producers will also be able to collect their refund money more quickly — within two years instead of five.
California offers tax credits of up to 35% on qualified expenses, which can be applied to any tax liabilities the production companies have in the state. The program allocates $750 million annually in film and TV tax breaks.
The budget trailer bill was introduced to the Senate on Friday by Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus and Senator Ben Allen (D-Santa Monica).
The new cap, issued by Gov. Newsom, would have undermined the “competitiveness” of the current California Film and Television Jobs Program, said the Entertainment Union Coalition, an advocacy group that supports the bill. But with these new modifications, the group — which represents the Directors Guild, SAG-AFTRA, IATSE and more — said the program will be able to continue to “support the fragile recovery of our industry here in California.”
“Most importantly, we want to recognize the major role our members played in today’s success as advocates for their industry in California,” Rebecca Rhine, the coalition’s president, said in a statement. “They sent an unprecedented 450,000 letters to the California legislature, making clear the negative impact that SB 122 [the new cap] would have on their livelihoods, their families, and their communities.”
Over the program’s first full year in its expanded $750-million form, the California Film Commission says it delivered $6.6 billion in direct production spending and $4.3 billion in qualified expenditures, supporting nearly 35,000 cast and crew jobs across 6,630 filming days statewide.
The bill cleared the Assembly floor by a vote of 68-2, with the Senate approving its companion measure by a vote of 32 in favor, 8 against the same day. It now awaits Gov. Newsom’s signature.
“It’s a good day that we took steps to strengthen the program and while we have to do more next year, this was a crucial first step,” Zbur said in an interview.
Zbur said he believes everyone in the state’s film and TV tax credit program should have been exempted from the corporate tax credit cap and he plans to look at that within the context of next year’s budget.
“There were budget implications to doing that, so we really did all the things that are viable to do in this legislative session,” Zbur said.
State lawmakers have approved a series of modest changes intended to bolster California’s film and TV tax credit program.
Among the key revisions, independent filmmakers would be exempted from the $5 million state corporate tax credit cap that was approved earlier this year as part of Gov. Gavin Newsom’s state budget.
Film industry advocates lobbied hard for a carve-out, saying the cap would undercut gains made under the current film and TV tax credit program at a time when Hollywood has been reeling from job losses.
The exemption is a compromise. Film industry advocates were hoping all types of producers would be exempt from the corporate tax cap.
The bill includes other changes intended to help Hollywood, such as allowing companies to carry forward older tax credits for up to 15 years (the old limit was nine) and reducing the discount they are charged when they opt to seek a cash refund on unused credits.
Producers will also be able to collect their refund money more quickly — within two years instead of five.
California offers tax credits of up to 35% on qualified expenses, which can be applied to any tax liabilities the production companies have in the state. The program allocates $750 million annually in film and TV tax breaks.
The budget trailer bill was introduced to the Senate on Friday by Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus and Senator Ben Allen (D-Santa Monica).
The new cap, issued by Gov. Newsom, would have undermined the “competitiveness” of the current California Film and Television Jobs Program, said the Entertainment Union Coalition, an advocacy group that supports the bill. But with these new modifications, the group — which represents the Directors Guild, SAG-AFTRA, IATSE and more — said the program will be able to continue to “support the fragile recovery of our industry here in California.”
“Most importantly, we want to recognize the major role our members played in today’s success as advocates for their industry in California,” Rebecca Rhine, the coalition’s president, said in a statement. “They sent an unprecedented 450,000 letters to the California legislature, making clear the negative impact that SB 122 [the new cap] would have on their livelihoods, their families, and their communities.”
Over the program’s first full year in its expanded $750-million form, the California Film Commission says it delivered $6.6 billion in direct production spending and $4.3 billion in qualified expenditures, supporting nearly 35,000 cast and crew jobs across 6,630 filming days statewide.
The bill cleared the Assembly floor by a vote of 68-2, with the Senate approving its companion measure by a vote of 32 in favor, 8 against the same day. It now awaits Gov. Newsom’s signature.
“It’s a good day that we took steps to strengthen the program and while we have to do more next year, this was a crucial first step,” Zbur said in an interview.
Zbur said he believes everyone in the state’s film and TV tax credit program should have been exempted from the corporate tax credit cap and he plans to look at that within the context of next year’s budget.
“There were budget implications to doing that, so we really did all the things that are viable to do in this legislative session,” Zbur said.
