Earlier this week, Governor Jerry Brown signed legislation to extend the $330 million California film and television tax credit program until 2025.
The tax credits scheme is vital in keeping projects in the California area, as opposed to productions chasing incentives and moving to the likes of New York, Canada and the UK, which offer extremely flexible tax credit proposals.
James Hattin, our founder, said: “We, as a Burbank-based visual effects studio, welcome the extension and hope the tax credit scheme continues to welcome world-leading productions to the state of California. California is a hub of wonderful creativity, and the more incentives productions have to benefit from that, the better.”
Since the bill was introduced in 2009, $840 million has been allocated to 150 approved projects. Those numbers reflect 18,000 cast members hired, 29,000 crew members appointed, and 13 TV series that relocated to California from out of state.
Additional provisions have been introduced as part of the extension, including requirements for harassment-free environments and a new Career Pathways Program providing technical skills for individuals from underserved communities.
Other provisions include:
• Awarding tax credits according to a jobs ratio rating system, whereby applications are ranked based upon the number of jobs created in California and other economic factors.
• Increasing funding for independent films and ensuring smaller independent productions are not competing with larger productions.
• Offering an additional 5 percent tax credit increase for local hires working outside the Los Angeles 30-mile zone.