×
You will be redirected back to your article in seconds

Gov. Jerry Brown Signs California Production Tax Credit Extension

California Gov. Jerry Brown has signed an extension of California’s production tax credit program for five years beyond its 2020 expiration with $1.6 billion in credits.

The Entertainment Union Coalition, a coalition of California IATSE Council, Directors Guild of America, International Brotherhood of Teamsters Local 399, LiUNA Local 724, and SAG-AFTRA, made the announcement Wednesday. Brown approved the legislation as part of signing the state’s overall 2018-19 budget.

“As a coalition that represents working men and women of the entertainment industry, we are elated that the California film and television production tax credit program has been extended through 2025. Our members are those who lose when film and television production leaves this state and they are also the direct beneficiaries when it returns to and stays in California,” the group said.

The program, which allocates as much as 25% of the budget to credits, was more than tripled in size in 2014 to $330 million annually to compete effectively with incentives in New York and Georgia. The program is overseen by the California Film Commission, which selects the TV and movie projects to qualify partly based on the number of jobs created.

“In 2014, when we worked to enact the California Film and Television Tax Credit Program 2.0, we told the state legislature it would bring production back and reverse the dismal lack of work our members faced,” the coalition said. “Now, four years after the 2.0 program launched, more than 45,000 of our working California members have been re-employed or employed, with $2.3 billion in wages paid to below-the-line workers.”

Since the expansion, the program has helped to relocate a total of 13 series to California, including Amazon’s “Sneaky Pete,” FX’s “Legion,” and HBO’s “Ballers.” Feature films covered under the program include Disney’s upcoming “Captain Marvel” and Paramount’s “Transformers” spinoff “Bumblebee.” The commission announced April 9 that it had selected two relatively big-budget films — “Ford v. Ferrari” and “Coming 2 America” — as recipients of the production tax credit along with seven other projects for a total of $55 million in incentives.

“We thank Gov. Brown for his support in signing SB 871,” the coalition said. “We thank the bill’s authors, Majority Leader Ian Calderon and Senator Holly Mitchell, for standing steadfastly with us from the beginning and getting us to where we are today, and Senate Pro Tempore Atkins and Speaker Anthony Rendon for helping ensure this program was part of the 2018 California budget. As productions continue to shoot in California, our members now know they can earn a living and stay with their families — well into the future.”

The new tax credit program will be dubbed Program 3.0. It includes more tax credits for indie films (from 5% to 8% of overall funding); an additional 5% uplift to indies and non-indies that hire out-of-zone labor; a new pilot  program to train individuals from underserved communities to prep for jobs in the industry; a requirement for approved applicants to furnish their written policy against unlawful harassment; a requirement for applicants to report diversity of above-the-line workers.

The new rules also extend the date by which principal photography must begin from 180 days to 240 days for projects with budgets over $100 million in qualified spending.

Nancy Rae Stone, Tax Credit Program Director at the California Film Commission said, “The new five-year extension signed into law today provides assurance that California will remain competitive, which means more employment for in-state crew members and production spending here at home where it belongs. The Film Commission is prepared to implement the new tax credit provisions and looks forward to managing Program 3.0 as part of California’s ongoing fight against runaway production.”

Charles Rivkin, Chairman and CEO of the Motion Picture Association of America, said, “The MPAA and its member companies are grateful to the leadership of the California legislature for extending the state’s film and television production incentive program. We are especially grateful for the support of Senator Holly Mitchell and Assembly Majority Leader Ian Calderon, who authored key legislation and Governor Jerry Brown, for signing the bill into law. As the birthplace of American cinema, California has seen a fledgling industry grow into a global economic powerhouse that today supports the livelihoods of more than 715,000 Californians. The enactment of this bill helps ensure that California will be home to many more productions, jobs, and local businesses for years to come.”

More Film

  • Jimi Hendrix sound check Monterey Pop

    Film Constellation Adds ‘Show Me the Picture’ to Berlin Market Slate (EXCLUSIVE)

    London-based sales and financing house Film Constellation has added Alfred George Bailey’s feature documentary “Show Me the Picture: The Story of Jim Marshall” to its Berlin market slate, ahead of the film’s SXSW premiere. Submarine Entertainment is handling distribution in North America. The film charts the life of American photographer James Joseph Marshall, whose work [...]

  • 'Sink or Swim,' 'Custody' Lead Race

    'Sink or Swim,' 'Custody' Lead Race for France's Cesar Awards

    French actor-turned-director Gilles Lellouche’s “Sink or Swim” and Xavier Legrand’s feature debut “Custody” lead the race for this year’s Cesar Awards, France’s equivalent of the Oscars, with 10 nominations each, including best picture and best director. “Sink or Swim” (“Le Grand Bain” in France), a star-driven dramedy about a men’s synchronized swimming team, world-premiered at [...]

  • Face to Face with German Films

    Face to Face with German Films Unveils the Six ‘Faces’ of 2019 (EXCLUSIVE)

    Teutonic promotional organization German Films has announced that its annual initiative supporting German filmmaking internationally, Face to Face With German Films, will focus on actors and actresses as the campaign enters its fourth year. Six of Germany’s leading thesps – Maria Dragus, Christian Friedel, Luise Heyer, Jonas Nay, Jördis Triebel and Fahri Yardim – will [...]

  • (L to R) VIGGO MORTENSEN and

    'Green Book' Lands Post-Oscars Theatrical Release in China

    Fresh off Monday’s news that it had picked up five Academy Award nominations, best picture favorite “Green Book” is set for more good luck. The film will hit Chinese theaters on March 1, the first weekend after the Oscars, which fall on Feb 24, Alibaba Pictures announced on its official social media account. The film [...]

  • Fan Bingbing

    Chinese Stars, Entertainment Companies Pay $1.7 Billion in Back Taxes

    Chinese film and TV stars and entertainment companies have forked over an additional $1.7 billion (RMB11.7 billion) in taxes in the wake of last summer’s scandal surrounding actress Fan Bingbing and a subsequent government crackdown. The figure was announced late Tuesday by China’s State Tax Administration. Chinese authorities launched a probe into the tax affairs [...]

  • Yalitza Aparicio as Cleo, Marco Graf

    Film News Roundup: AMC, Regal to Leave 'Roma' Out of Best Picture Showcases

    In today’s film news roundup, “Roma” will not be in the best picture showcases at AMC and Regal, “Jimi Hendrix: Electric Church” gets a release and SAG-AFTRA’s David White has a new appointment. ‘ROMA’ SPURNED AMC Theatres and Regal Cinemas are leaving Alfonso Cuaron’s “Roma” out of their upcoming annual showings of the contenders for [...]

  • First Look at SAG Awards' Cuban

    First Look at SAG Awards' Cuban-Inspired After-Party (EXCLUSIVE)

    Celebrities at this year’s SAG Awards won’t have to go far for some tropical fun. Sunday’s annual post-show gala, hosted by People magazine for the 23rd year, is set to feature a Cuban-themed party space adjacent to the Shrine Auditorium. “We’re kind of going back to more of a thematic element. I have some close [...]

More From Our Brands

Access exclusive content