L.A. Mayor Karen Bass made a passionate plea for the expansion of the film and TV tax credit in her recent State of the City address. She emphasized the importance of revitalizing the entertainment industry and bringing Hollywood back to its former glory.
Bass highlighted the city’s pressing issues such as the fiscal crisis, homelessness, and recovery efforts from the Palisades Fire. However, she stressed the significance of supporting the film industry by tripling the current $330 million state subsidy.
Governor Gavin Newsom has proposed increasing the tax incentive to $750 million, starting in July. Two bills, SB 600 and AB 1138, are currently under consideration in the Legislature to implement this increase and expand the base credit from 20% to 35% of qualified production costs. The bills also seek to include sitcoms, animation, and large-scale competition shows in the incentive program.
Hearings on these bills are scheduled for Tuesday and Wednesday in the Capitol, with industry labor unions and the California Production Coalition advocating for their passage. Bass also announced plans to make filming on city property more affordable and streamline the permitting process to support the industry.
In a budget proposal released after the speech, Bass’s office outlined 1,647 layoffs as a last resort decision to address the city’s nearly $1 billion shortfall. She plans to travel to Sacramento to lobby for additional funding and assistance with escalating liability costs. Newsom has previously allocated $2.5 billion to aid Los Angeles County in recovering from recent wildfires.
The push for expanding the film and TV tax credit is seen as a crucial step in revitalizing the entertainment industry and creating job opportunities in Los Angeles. With ongoing support from lawmakers and industry stakeholders, the hope is to bring Hollywood back to its thriving status.
