CA Lawmakers Cut Big Deal for Hollywood: Refundable Tax Credit & New Safety Rules
Governor Newsom is expected to sign the bill by the end of June.
California’s lawmakers will extend national film and television tax credit for 5 more years with a new “refundable” feature, allowing studios to receive cash payments from the state if their credits are more significant than their tax bills. Gavin Newsom will likely sign the grand deal between the governor and state lawmakers into law by the end of June.
The new legislation incorporates much of Newsom’s proposal earlier this year to make $330 million in film tax credits available annually from 2025 to 2030. Currently, with a non-refundable tax credit, only Disney and Universal Studios benefit from the system because they have larger tax bills in California due to their theme parks. Making it refundable will also allow Netflix, Warner Bros. Discovery, Sony, and Paramount to benefit from the program.
Furthermore, new safety protocols for film production workers will be established by law, following the tragic Rust incident from last year. The incident resulted in the death of cinematographer Halyna Hutchins and injuries to director Joel Souza, caused by a live round accidentally discharged from a prop revolver by actor Alec Baldwin. This measure aims to prevent such incidents in the future and ensure the safety of all individuals involved in film production.
New safety rules will be enforced for productions receiving tax credits, which include hiring a risk advisor and maintaining their presence on set during filming. Regardless of having tax credits or not, all productions must hire qualified prop masters and armorers for handling weapons, firearms training, and a state permit. Safety measures are non-negotiable and will be strictly implemented.
The upcoming bill mandates diversity requirements, with tax credits for productions contingent upon meeting these targets. Additionally, the state film commission will appoint a member with expertise in diversity, equity, and inclusion. These measures will promote inclusivity in the film industry and promote representation of all voices.
Source: Los Angeles Times
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Governor Newsom is expected to sign the bill by the end of June.
California’s lawmakers will extend national film and television tax credit for 5 more years with a new “refundable” feature, allowing studios to receive cash payments from the state if their credits are more significant than their tax bills. Gavin Newsom will likely sign the grand deal between the governor and state lawmakers into law by the end of June.
The new legislation incorporates much of Newsom’s proposal earlier this year to make $330 million in film tax credits available annually from 2025 to 2030. Currently, with a non-refundable tax credit, only Disney and Universal Studios benefit from the system because they have larger tax bills in California due to their theme parks. Making it refundable will also allow Netflix, Warner Bros. Discovery, Sony, and Paramount to benefit from the program.
Furthermore, new safety protocols for film production workers will be established by law, following the tragic Rust incident from last year. The incident resulted in the death of cinematographer Halyna Hutchins and injuries to director Joel Souza, caused by a live round accidentally discharged from a prop revolver by actor Alec Baldwin. This measure aims to prevent such incidents in the future and ensure the safety of all individuals involved in film production.
New safety rules will be enforced for productions receiving tax credits, which include hiring a risk advisor and maintaining their presence on set during filming. Regardless of having tax credits or not, all productions must hire qualified prop masters and armorers for handling weapons, firearms training, and a state permit. Safety measures are non-negotiable and will be strictly implemented.
The upcoming bill mandates diversity requirements, with tax credits for productions contingent upon meeting these targets. Additionally, the state film commission will appoint a member with expertise in diversity, equity, and inclusion. These measures will promote inclusivity in the film industry and promote representation of all voices.
Source: Los Angeles Times
Share:
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