California Governor Gavin Newsom is backing legislation extending the state’s film and television tax program for five years through 2030.
The decision on Wednesday was in an attempt to entice studios from states like Georgia and Oklahoma, which have passed anti-abortion legislation following the Supreme Court’s Roe v. Wade ruling.
If passed, the bill would provide $1.65 billion in tax credits or $330 million every year after 2025, when the program was scheduled to terminate. Last year, Newsom signed off on a $180 million incentive package over the next two years, bringing the yearly incentive amount to $420 million. To encourage the development of soundstages, the program was expanded with $150 million in tax credits.
“As other states roll back people’s rights, California will continue to protect fundamental freedoms for all and welcome businesses that stand up for their employees,” Newsom said. “Extending this program will help ensure California’s world-renowned entertainment industry continues to drive economic growth with good jobs and a diverse, inclusive workforce.”
In a public letter to Hollywood, Governor Gavin Newsom urged businesses to cease doing business in states that have “waged a cruel assault on fundamental rights” as a result of the Supreme Court’s decision. “Today more than ever, you have a responsibility to take stock of your values — and those of your employees — when doing business in those states,” he wrote.
Newsom emphasized that California shares the values of people working in the film industry. He continued, “So to those in power to make decision about where to film, where to hire, where to open new offices, we in California say: Walk the walk.”
After Georgia passed legislation in 2019 banning abortions after a fetal heartbeat is detected, there were numerous calls to cease shooting in the state. More than a dozen major film and television studios, including Disney, WarnerMedia, NBCUniversal, AMC, Sony, CBS and Viacom, threatened to withdraw productions from the state if the legislation was enacted. Bob Iger, former chief executive of Disney, said in response to the legislation that, “Many people who work for us will not want to work there, and we will have to heed their wishes in that regard.”
Despite a federal appeals court’s July decision to lift an injunction against the statute, discussions of a boycott have died down. Despite the fact that Georgia-based studios continue to film there, they’ve committed to paying for their staff’s travel costs if they need reproductive care outside of the state.
Calls to cease firing in Georgia have been met with resistance from gubernatorial candidate Stacey Abrams and others, who claim that such a measure would be detrimental to those on the ground working on film and TV shows, most of whom opposed the bill. Nearly 100,000 people are working in the film industry in Georgia.
Studios may be hesitant to pull productions from specific states due to tax benefits. Of the 22 states that have banned, mostly banned, or would soon ban abortion procedures, 15 provide tax incentives to attract in-state film production. They give nearly half a billion dollars in free money to the film industry every year. In 2021, Georgia alone gave out $1.2 billion in tax credits.
Following the Supreme Court’s decision to repeal Roe v. Wade, Governor Newsom signed a bill safeguarding patients and health-care providers from civil liability for providing or obtaining abortion care.
With production costs rising in California and the state offering fewer tax credits, Governor Gavin Newsom has set his sights on bringing some of them back. In 2021, he signed a bill earmarking an extra $15 million for series that move to California, increasing the overall annual amount to $71.1 million. To qualify as a relocating series, the criteria were also loosened to include programs that produced their pilot episode outside of California. (Previously, relocation series had to complete an entire season outside of California to be eligible.)
According to the governor’s office, the state’s film and television tax program has generated $24 in economic activity for every $1 invested, helping create over 100,000 jobs.
More Project Casting Entertainment News:
