It’s a Global Industry
California has been synonymous with the motion picture industry for one hundred and fourteen years. Millions of tourists come to “Hollywood” each year to see where their favorite movie or TV show was shot. We are home to iconic film studios that set up shop here as early as 1911, because of a wealth of talent, ideal weather, and diverse shooting locations. However, the Golden State has seen a marked contraction in motion picture production in recent years. This shift is reshaping California’s economic landscape and cultural identity. Someday, we could be known as the place where it all started and ended.
While California may no longer hold an unchallenged monopoly on motion picture production, it remains a significant player in the global entertainment industry. The state’s concentration of talent, industry know-how, post-production facilities, and historic legacy give it a competitive edge that cannot be easily replicated.
One of the most significant causes of this migration has been the aggressive tax incentives offered by other regions. First, they were provided by several states, and now they’re offered globally by many countries. At any given time, $1.5 billion in incentives are available.
In 2009, California introduced its film and television tax credit program and expanded it in subsequent years. The latest version, “California Film & Television Tax Credit Program 4.0,” goes into effect in July this year. We are working on two bills that will restructure Program 4.0 to be globally competitive, AB 1138 and SB 630, to increase the funding to $750 million annually. Our campaign, “Keep California Rolling,” is in full gear with members and Local leaders traveling to Sacramento to educate the new legislators on the economic value of the California Film & Television Tax Credit Program. Studies show that for every dollar in credits, results in generating $24.00 into the state’s economy. From local mom-and-pop businesses to hotels, florists, dry cleaners, etc., that all support the industry. This is the value of the program.
California must continue refining its incentive programs, invest in cutting-edge production technology, and perhaps most importantly, support the next generation of filmmakers and crew members who still dream of making it big in Hollywood.
In Solidarity,
Scott Bernard
Business Representative