California lawmakers initiated a discussion on Thursday regarding the removal of the cap on the state's $750 million incentive program for film and television production.
The state previously increased the overall cap from $330 million to $750 million and raised the base credit from 20% to 35% last year. Despite these changes, union leaders and industry advocates claim the program is insufficient to prevent production jobs from moving to other regions.
FilmLA reported last week that production volume in the Los Angeles area continues to fall. The share of scripted television shows receiving a state subsidy has nearly doubled. Rick Chavez Zbur said he wants to do his best to make changes, suggesting either an increase to the cap or its total elimination.
Zbur also argued that the state should account for the benefits of the film credit rather than focusing solely on the headline cost. Rowan Isaaks claimed that film credits return between 20 and 50 cents for every dollar the state invests, though the process remains subject to significant uncertainty.
Stephen Cheung found a return of $1.07 to state and local coffers. Isaaks noted that the higher credit might result in fewer projects overall. Nick Schultz suggested extending the expiration date of the state program, which is currently scheduled to sunset in 2030.
Schultz proposed providing a subsidy for above-the-line costs, such as salaries for directors and actors, while opening eligibility to game shows and commercials.
Schultz asked, "Why should we be picking and choosing?" and added, "Why should we be picking winners and losers? Let’s incentivize all of it to stay." The Legislature previously created a $10 million incentive for post-production and passed a bill to expedite studio rebates. Additional measures included exempting credits for independent films from a $5 million credit cap.
Lindsay Dougherty warned that officials should not assume work will return simply because of changes in federal policy.
Betsy Beers had hoped to film a new "Grey’s Anatomy" spinoff in Santa Clarita, but the show, set in West Texas, did not receive a California tax credit.
