The Los Angeles Board of Supervisors voted 5-0 on Wednesday to support Gov. Gavin Newsom’s proposal to expand the California Film & Television Tax Credit Program from $330 million a year to $750 million. If approved, the proposal would take effect in July 2025.

The motion stated the challenges the industry has faced in recent years ranging from the coronavirus pandemic to the actors and writers strikes of 2023.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation, and unparalleled talent,” Governor Newsom said in a press release. “Expanding this program will help keep production here at home, generate thousands of good paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

The motion, put forth by Westside Supervisor Lindsey Horvath and Supervisor Kathryn Barger cites data from the 2024 Otis Report on the Creative Economy, which said that 27 percent of the national domestic film and television workforce resided in greater Los Angeles, but cited an eight percent reduction in California’s creative workers by 70,840 people in 2023.

In 2009, the California Film & Television Tax Credit Program was launched to keep production jobs in the state. The program overall has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state.

Horvath called the industry a “major cultural and economic driver” in the region.

“This storytelling is also one of the largest industries directly employing people as well as jobs and businesses that support the industry. Given the significance of film and television in our local economy, it is critical we make financial investments in this industry,” she said. “As other jurisdictions across the globe provide tax credits, the governor’s proposal to significantly increase tax credits to $750 million dollars aligns with and signals the industry’s importance and value.”

She further added, “I applaud the governor for his leadership and wholeheartedly support this investment in our workers and our creative output.”

According to a recent study by Film L.A., production in Los Angeles County fell by 19.7 percent in 2023 compared to the previous year.

“We have seen production leave our state and move to other states with better incentives such as New York, Georgia, and even out of the country to the United Kingdom and Ontario,” said Barger.

She added that the lack of production in Los Angeles affects many small businesses in the area that support the entertainment sector. “These include the mom-and-pop restaurants, caterers, dry cleaners, retailers and so much more.”

In September 2023 the Board of Supervisors passed the “Long-term Supports for the Film Industry in L.A. County” motion, which directed the Department of Economic Opportunity (DEO) to explore ways to incentivize film in L.A. County, including removing regulatory and zoning hurdles, potential tax reductions, and fee waivers.

Photo by Missvain from Wiki Commons.