EP NowStoreAcademySupportProduction LotProducts by Country
Newsroom Home

Watch a ‘Call to Action’ for New California Tax Credits at IndieWire’s Future of Filmmaking Summit

IndieWire's Future of Filmmaking Summit held in Los Angeles this weekend discussed Gavin Newsom's proposed $750 million change to California's tax credit system and how to get it to stick.
November 11, 2024

As seen on Indie Wire.

Last month, California Governor Gavin Newsom came to Los Angeles and announced a long overdue change to the state’s tax credit program for film and TV production. The state would allocate $750 million of tax dollars — up from $325 million — to film productions in an effort to keep filming in California.

Scott Budnick, an appointee of Newsom’s and a producer known for “The Hangover,” said at IndieWire’s Future of Filmmaking Summit over the weekend that Newsom announcing his budget plans in October ahead of the full budget in January is “pretty unprecedented.”

“He was very, very concerned and understood the urgency and the emergency of the moment and knew he had to do something immediately,” Budnick said on a panel discussion titled “Filming Outside Hollywood: Challenges, Opportunities, and Passports,” presented by United for Business.

Budnick was joined by FilmLA President Paul Audley and Entertainment Partners’ Sarah Westman-Liu to explain the bigger picture challenges facing the entertainment community in Los Angeles, in California, and across the U.S. more broadly.

Audley recently shared research from FilmLA that showed in the summer of 2024, film production was even lower than it was when the industry was on strike back in summer 2023. It’s the most alarming number in a long trend of production leaving Los Angeles and moving to Georgia, Canada, or overseas.

“The state of California broadly had this image that the film industry couldn’t leave because it was headquartered here, which is a really stupid way to look at the industry. Just because the executives of Disney and Warner Bros. live here doesn’t mean they produce here,” Audley said on the panel. “It used to be called ‘Runaway production, and I changed it to ‘Ran-Away,’ to force the issue that it’s gone and it’s going in that it’s gone and it’s going, and they have to start waking up, it’s not preventing it from leaving.”

Westman-Liu illustrated how these other film markets have been able to both build up their infrastructure and over time make their locations more attractive to studios and producers. While Georgia does not have a cap on the amount of incentives the state can offer film projects, it’s not just the dollars.

Other jurisdictions allow productions to qualify above-the-line talent to receive tax credits, something that’s not available in California. What’s more, European countries are offering incentives built into the tax code on the national level, so producers don’t have to worry that a state will slash the amount of the film incentive once the next budget arrives.

“As soon as you cross the border, U.S. producers are dealing with an extremely favorable exchange rate, coupled with also that Canada is a lower labor cost country. So right off the bat, there could be a 20-30 percent savings in the overall production budget, and that’s even before the incentive,” Westman-Liu said.

Budnick pointed to the rise of Netflix productions in Colombia, where he said the same project can be budgeted there at $4.5 million compared to $23 million in the U.S., and that while they don’t have the soundstages, they have the crews necessary to make your project.

Such savings are hard for filmmakers to pass up, so Budnick said the workers living in Los Angeles and California need to step up to make sure filming in the Golden State is as attractive as possible.

“This is the call to action, pay attention,” he said to the crowd.

Budnick has helped pass 32 different bills in the California State Legislature. He knows how to “get shit done” in Sacramanto. But the tax credit has been stuck in the mud for the last 10 years because legislators “never get the real glimpse of what this business looks like.” They see white male studio executives pleading their case, and not the diverse group of below-the-line talent explaining why such benefits are so crucial.

“I don’t want to give a tax credit to all these fat cat studios and all these male, pale, and stale workers that are coming up here that have been in the union for 40 years,” Budnick said of the legislators. “They don’t look like my constituents. And that’s a problem.”

He says people of all stripes and ethnicities need to be up in Sacramento walking the halls and talking to congressmen, and he’s prepared to help coordinate these meetings every week between January when the budget is announced and until June when the congressional session is over.

“More than anything, if you want to win this, you need workers,” he said. “You need the people that are on the ground who are having to mortgage their homes or foreclosing on their homes because they can’t find work right now, to be up there talking about why they joined this business, what their life was like, and what is happening right now.”

Newsom has proposed an expansion of the program to $750 million, but Budnick says it will take grassroots political effort to make sure that number stays there and doesn’t get cut down further and that lawmakers understand why such tax credits are a priority.

“There’s the ability to do more,” he said. “There’s a lot more that needs to happen other than just the number to make us unbelievably competitive and to have studios say we want to stay here, we need to stay here.”

Related Content

$750 Million Tax Incentive Proposal by California Governor Gavin Newsom Could Spell Relief for Hollywood

10/29/2024
A new proposal could double California's film & television tax incentive program and retain valuable jobs...
More
 Newsroom-Logo-Thumbnail-Newsweek

Gavin Newsom Tries to Save Hollywood

10/28/2024
The California governor has increased tax credits by more than $220 million to attract film and TV...
Thumbnail-New-York-Times

California Governor Proposes $750 Million in Annual Film Tax Credits

10/28/2024
Gov. Gavin Newsom wants to more than double the amount the state offers in incentives, which would make...
Los Angeles Times logo-sq

California’s film industry is in crisis. Can it be saved?

9/18/2024
California has a film and TV production problem. Industry professionals and experts are trying to...
The Ankler logo-black and white-square

TV Production Exodus: 'Misery in L.A.', Who's Getting 'Screwed' and What to Do About It

9/3/2024
As streamers ship series elsewhere, lawyers and producers vent, and the state (finally) takes action....

California vs. the World: The Race to Nab Film and TV Productions

8/22/2024
Locales from Atlanta to Tokyo are steadily beefing up their tax relief programs in bids to attract...
Los Angeles Times logo-sq

Georgia Film Tax Credit Bill Fails

4/1/2024
Georgia lawmakers kill effort to cap film tax credits as production hub continues to rival California.
Podcast-film-florida-logo

Film Florida Podcast: Episode 132 – Joe Chianese, Entertainment Partners

11/12/2024
Joe Chianese speaks about his role providing production and legislative consulting, financial, tax, and...
Joe Chianese speaks with Frank Mottek on the Mottek on Money radio show

Joe Chianese Talks Tax Incentives with Frank Mottek on the Mottek on Money Show

10/23/2024
In this episode, Chianese shares valuable insights on the current state of Hollywood's TV and movie...

6 Ways Film and TV Producers Can Benefit from Filming in Canada

10/16/2024
Learn why Canada’s recent production infrastructure and tax incentive changes offer big benefits to local...
Workplace Violence Prevention Plan and Training Required in California Since July 1, 2024

Workplace Violence Prevention Plan and Training Required in California Since July 1, 2024

9/24/2024
Under this law, employers must train their employees in California about the different types of workplace...
Los Angeles County Imposes Fair Chance Ordinance

Los Angeles County Imposes Fair Chance Ordinance

9/24/2024
The Ordinance will impact job postings as well as how employers conduct and handle employee and job...
PAGA Reforms Provide Relief for Employers

PAGA Reforms Provide Relief for Employers

9/24/2024
On July 1, 2024, California Governor Gavin Newsom signed SB 92 and AB 2288 into law, significantly...
Canadian flag waving over Parliament

Tax Credit Changes Positively Impact Film and Television Production in Ontario

9/17/2024
Ontario’s recent tax credit changes make it easier than ever for film and TV productions of all sizes and...

Ontario Ready for Hollywood Post-Strikes Reality: “It’s a Reset Year for Everyone”

9/9/2024
Slowly but powerfully the major studios and streamers have returned to shoot originals on a tighter budget...
Thumbnail-Master Series panelists discuss Australia's Location Offset film incentive

How to Maximize the Benefits of Australia’s 30% Location Offset

8/22/2024
Learn how to boost your production's budget with the recently ratified Location Offset, other state and...
newsroom-logo-thumbnail-the-town-480

The Arms Race Behind Where Movies Shoot

8/22/2024
Matt Belloni is joined by Joe Chianese, SVP of Incentives at Entertainment Partners, to talk about where...
Cameramen with professional equipment films two young people

What is an Incentives Estimate and Why Do I Need One?

8/21/2024
Find out how an incentives estimate can help you to lock down your production's finance plan and turn your...
Square image of boom mic operator

Entertainment Partners Strengthens Operations to Support Production Growth in Australia and New Zealand

8/13/2024
Learn how EP supports global production by bringing innovative industry training, niche support services,...

8 Locations Independent Filmmakers Should Consider for Their Next Project

7/16/2024
Global jurisdictions with enticing incentive packages (and low minimum spend!) every filmmaker should know...

How Production Incentives Help Indie Filmmakers Choose the Best Filming Location

7/9/2024
Learn how selecting the right location can play a large part in preserving your production budge, thanks...

The Independent Filmmaker's Guide to Production Incentives

6/28/2024
Expert guidance on how production incentives work, and which may be best for your project and budget.

How to Secure Film Financing: An Overview for Independent Producers

6/19/2024
From choosing the right funding source to setting up LLCs and agreements, learn about the financing...
director looking at a woman on a camera monitor

Is New Jersey the New Hotspot for Filming on the East Coast?

5/14/2024
From attractive tax incentives to creative advantages, find out why the Garden State is emerging as a...
Master Series Thumbnail–UK indie film tax credit

Boost Your Budget with the Independent Film Tax Credit

5/9/2024
Learn how to maximize UK incentive dollars with the new IFTC!
black and white filmmaker logo

Credits Where Credits Are Due

5/7/2024
Scott Macaulay looks at the state of film tax incentives in 2024.
EP Blog_SQUARE_Filming in Australia

Filming in Australia: Your Guide to Incentives, Infrastructure, and the Future of Production Down Under

5/1/2024
Learn about Australia’s growing film incentives, new production facilities, and what’s next for Aussie...
Cameraman filming outside in a field

HMRC Announces Changes to Claiming UK Creative Sector Tax Incentives

4/26/2024
What productions should know about the increased disclosure requirements under the UK's Audio-Visual...
Four Panelists from Indie Producer's Playbook

Indie Producer’s Playbook: Setting Up a Successful Production

4/19/2024
Learn best practices for how to set up and run a successful production, from choosing the right corporate...

Japan's Latest Film Tax Incentive Sets the Stage for Global Productions

3/13/2024
From Miyazaki to Godzilla, Japan is entering a cinematic renaissance and poised to attract international...

What Does the UK's New Independent Film Tax Credit (IFTC) Mean for Productions?

3/7/2024
As the UK government strengthens its support for productions, find out what the latest changes to the...

Entertainment Partners Hosts 'An Independent Producer's Survival Guide' in Park City

2/27/2024
Joe Chianese, EP’s SVP & Production Incentives Practice Leader, brings independent filmmakers and industry...
SB 1162-thumbnail-blue

SB 1162: California Pay Data Reporting Law FAQs

2/17/2024
A look at California’s new expanded pay data reporting law and its impact on the entertainment industry.
Topic: Legal
More

Payroll & Finances

PayrollResidualsSmartStartSmartTimeEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP ResidencyMoneypenny

Manage Multiple Productions

AssetHubSmartHub

Additional Services

Academy
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2024 Entertainment Partners. All rights reserved.