STATEWIDE – Governor Gavin Newsom’s proposed 2023-24 state budget extends funding for film and TV tax credits an additional five years. The proposed $330 million annual budget is part of an ongoing effort to retain and grow production activity across the state.
Named as one of the top 10 movies of 2022, the science fiction horror film Nope left audiences intrigued. The movie, filmed in Southern California, also used tax credits to generate 1,550 local jobs.
An economic impact study found that the California Film and Television Tax Credit program supported more than 110,000 total jobs in California from 2015 – 2020.
The program contributed almost $21.9 billion in economic output over five years and returned an estimated $961.5 million in tax revenue to state and local governments.
The proposed budget will extend the 2025 end cycle to fiscal year 2030. In addition, California Film and Television Tax Credit 4.0 proposes to make tax credits partially refundable.
“The five-year extension and provision to make tax credits refundable will give industry decision makers more options and the certainty they need to make long-term investments here in the Golden State. This will translate into more production-related jobs, spending and opportunity,” said California Film Commission Executive Director Colleen Bell.
The state says these refundable tax credits will make the program applicable to a broader range of applicants.
Under California’s current program, credits for feature films and TV projects are non-refundable and non-transferable. Credits for independent film projects are currently transferable but non-refundable.
With the proposed budget, all applicants admitted into the tax credit program could be eligible for refundable tax credits.
In addition to bringing production jobs and spending to regions across the state, the program also promotes workforce training, diversity and inclusion.
For more information about the California Film and Television Tax Credit program visit: https://film.ca.gov/tax-credit/