Newsom Proposes Tax Credit Expansion to Revive California’s Film Industry
Governor Gavin Newsom has proposed a plan to revive California's struggling film and TV production industry.
What You Need to Know
The plan suggests more than doubling the state’s film and television tax credit budget from $330 million to $750 million, potentially starting in July 2025.
This move would make California the leading state for capped film incentives, outpacing states like New York.
The proposal aims to bring back production jobs lost to states with better tax incentives. For example, Georgia, New York, and Canadian provinces.
Film and TV production in California has dropped sharply due to the pandemic, high costs, and competition from states with better incentives.
The proposed tax credits exclude certain expenses, such as actor salaries. Although, states like Georgia include them in their incentives.
This aspect remains a challenge as California works to attract productions back to the state.
How It Impacts You
For property managers in Los Angeles, this initiative could signal renewed demand for commercial properties suited for production activities.
If successful, increased film and TV production could lead to heightened occupancy rates in commercial properties.
As well as driving demand for sound stages, office space, warehouses, and post-production facilities.
Increased production also often boosts local economies, potentially increasing revenue for properties adjacent to production sites as well.
However, commercial properties might need to meet specific requirements or offer competitive leasing terms to attract film and TV companies drawn back by these incentives.
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