Hollywood studios will be able to get the lucrative tax benefits they’ve been seeking for years, and film production workers will be able to get the deadly “tax incentives” under new legislation that Governor Gavin Newsom expects to sign into law by the end of the year. You’ll have the new safety protocols you’ve been wanting since the “Last” mass shooting. this week’s.
It reflects a massive deal between the governor and state legislators to tackle Hollywood’s most vexing political struggle in Sacramento. One all-encompassing bill The content was made public on Saturday as lawmakers raced to finalize the state budget.
The measure would extend the California film and television tax credit for an additional five years and introduce a new regime. “Refundable” feature that allows studios to accept payments in cash If the deduction amount exceeds the tax amount, you will be given benefits from the state. The perk has been pushed by studios in California for several years in the face of competition from other states.
By requiring the production to receive a tax credit, we factor in certain safety concerns. Follow new safety regulations This includes conducting a risk assessment and hiring a safety advisor who will be on set during the shoot. All productions require firearms training and special state permits for prop masters and armourers who work with weapons.
It also adds new diversity requirements that have been a priority for Democratic lawmakers who were frustrated that Hollywood workers did not reflect California’s ethnic and gender diversity. Some of the tax credits that production companies receive are dependent on achieving diversity goals. Most of the tax credits go to community college vocational training programs, primarily for students of color. And the bill mandates the addition of new commissioners to state film boards with expertise in diversity, equity, and inclusion.
Rep. Wendy Carrillo (D-Los Angeles), who played a key role in drafting the bill, said, “The art is in compromising and negotiating and finding solutions that work for everyone.”
“The studio wants refundability and wants to make more of these funds available. claimed to be the director. …was the consensus proposal for both sides to see if this would work. ”
tried to pass a series of safety laws last year stuck in a disagreement With the Motion Picture Association. and the IATSE trade union representing workers in the entertainment industry.they Negotiations continued this year And agreement has been reached on the terms of Senate Bill 735, which is incorporated into the new film tax credit bill.
The bill’s author, Senator Dave Cortese (D-San Jose), is part of a bill to improve film set safety and firearm protection, starting the week after the 2021 movie “Last” shootings. said it was under development.
He recalled contacting California/OSHA and the Department of Labor Relations after the shooting to ask what laws were in place to prevent shootings in California.
“I thought there would be all kinds of billing history,” he said. “But there was nothing.”
Earlier this year, after facilitating negotiations with the Motion Picture Association, Cortese said: As he puts together his SB 735, the IATSE department began a conversation between the Motion Picture Society, the governor’s office. and labor groups are considering including a film safety bill in the budget.
“There is a certain efficiency and expediency in doing it now,” he says.
Cortese said he visited sets at Universal and Warner Bros. It aims to codify into law that
“Just because they’re doing it doesn’t mean it’s spilling over to other industries,” he says. “We wanted this to be law and apply to everyone from top to bottom.”
This law contains many Newsom proposed a $330 million movie tax credit earlier this year Carrillo said making the credits refundable should allow more companies to use the credits, which should bring more production to the Golden State.
Currently, only Disney and Universal Studios benefit from the tax credit, she said. This is because theme parks have a big tax burden in California. Carrillo said Netflix, Warner Bros. Discovery, Sony and Paramount could also benefit from the program by making it refundable. Even if your California tax is less than your eligible tax credit, the new program will allow you to receive a portion of your tax credit in cash.
“We’re fighting a very competitive battle to make sure we keep these jobs in California. These jobs primarily impact Los Angeles County and the City of Los Angeles,” Carrillo said. rice field.
The motion picture industry bill is one of about 20 budget-related bills lawmakers are expected to pass on Tuesday toward a final agreement with Newsom on the 2023-24 state budget.Democrats take control of the Capitol, making negotiations difficult Address $31.5 billion deficit.
Newsom faces a June 30 deadline for budget signatures. By that date, he plans to sign a number of budget-related bills sent to him by lawmakers this week.
