November 22, 2024
44 S Broadway, White Plains, New York, 10601
ECONOMIC REPORT ECONOMY

Time to Take Action: Hollywood in Crisis – Urgent Call for Bigger Tax Credits!

Time to Take Action: Hollywood in Crisis – Urgent Call for Bigger Tax Credits!

In the bustling world of entertainment, where lights, camera, and action are a way of life, California’s once-thriving film industry is facing a crisis. FilmLA, the organization responsible for overseeing film permits and tracking on-location productions in Los Angeles, is raising an urgent call to expand California’s movie and TV tax incentive program to address the ongoing struggle faced by Hollywood.

  1. Decline in Filming Activity:

    • A recent study by FilmLA unveiled a startling statistic – filming activity in the Los Angeles region saw a significant decline of 19.7% when comparing titles released in 2023 to those in 2022.
    • Notably, California’s share of the global production market dropped from 22% to 18% during the same period, painting a grim picture for the state’s film industry.
  2. The Urgent Need for Support:

    • FilmLA President Paul Audley emphasized the necessity of bolstering California’s film industry by expanding the California Film & Television Tax Credit Program.
    • Audley highlighted that California must attract more industry investment to sustain its position as a premier location for film, television, and commercial projects.
  3. Competition from Other States:
    • Experts and industry insiders concur that California’s current $330-million tax credit program falls short in comparison to the more lucrative incentives offered by other states and countries.
    • To stay competitive, California must consider significant enhancements to its tax incentive system, including expanding coverage for commercial production and salaries for key industry personnel.

In a recent interview with The Los Angeles Times, Colleen Bell, the executive director of the California Film Commission, acknowledged the challenge of competing with other states’ tax credit programs. While California may not always match dollar-for-dollar, Bell emphasized the state’s intrinsic value derived from its robust infrastructure and highly skilled workforce.

As the entertainment industry contributes a staggering $43 billion in wages to California’s economy, the question remains – how long can the state thrive on a diminishing slice of the production pie? With other production hotspots like Georgia, New York, the United Kingdom, and Canada luring studios with more appealing incentives, California must rise to the occasion to revitalize its film industry.

In conclusion, it is evident that California’s film industry is at a critical juncture, necessitating immediate action to reignite its allure among production companies. Expanding and enhancing the California Film & Television Tax Credit Program is not merely an option but a vital strategy to ensure the state remains a beacon for film and television projects. The time is now to invest in California’s film industry and secure its legacy as a powerhouse in the entertainment world.

Leave feedback about this

  • Quality
  • Price
  • Service

PROS

+
Add Field

CONS

+
Add Field
Choose Image
Choose Video