Posted on 07/01/2023 1:27:26 PM PDT by Libloather
(CNN) - The state of California is about to give movie and TV studios a new lucrative tax perk.
A bill awaiting California Gov. Gavin Newsom’s signature would extend the state’s tax incentive program for film and TV productions for five years but with a key update: Studios with more tax credits than they can use will be able to exchange those credits for cash. The bill, part of the state’s overall budget plan, was passed by California legislators on Tuesday, and Newsom is expected to sign it on Friday.
The bill also mandates any production that receives the tax credit to comply with new on-set firearm safety protocols following the 2021 deadly shooting on the set of Alec Baldwin’s film “Rust,” and it implements requirements aiming to meet diversity hiring targets.
The new, refundable tax credits come as competition for film and TV production from other states and countries is on the rise. States like New York and Georgia are gaining share of the TV and film market, thanks to their own tax incentive programs, according to a 2021 report from FilmLA - a nonprofit organization that helps creators with production planning and film permitting.
The bill should be a boon for studios like Netflix. The streaming giant had not previously been able to take full advantage of the tax credit program since it uses a separate research and development incentive from California to significantly reduce its tax liability. In a 2020 SEC filing, Netflix said it had $250 million in California R&D tax credits - far more than it could use.
Disney and Comcast’s Universal Studios were the only two studios that benefited under California’s existing tax incentive program, due to their relatively larger tax bills from theme parks, according to Democratic assemblywoman Wendy Carrillo...
(Excerpt) Read more at cnn.com ...
Shouldn’t have let Deal or Perdue(cannot remember which one, probably Perdue) sign the tax breaks to import Hollywood.
10 years is all it took to destroy Atlanta and the suburbs.
I know that feeling. I’m pretty much done with Hollyweird these days.
Typical. As far as noticing? Most of it was crap prior, it has continued to be crap now. So, nope! Haven’t noticed a thing!
May they maintain their picket lines for years.
Hollywood always asks everyone to pay for higher taxes except themselves.
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