Hello Brothers and Sisters,
July marks one year from the increased funding to and modernization of our Film and Television Jobs Program! Since its implementation across the full fiscal year (July 1, 2025 – June 30, 2026), the newly expanded Program 4.0 has awarded 170 total projects that collectively represent:
- $6.6 billion in direct production spending in California
- $4.3 billion in qualified expenditures (inclusive of qualified wages)
- $2.58 billion in qualified wages
- 34,921 cast and crew jobs
- 212,065 background performer days worked
- 6,630 total California filming days, including 1,351 out-of-zone filming days
While we celebrate the success and improvement of our jobs program, our Entertainment Union Coalition (EUC) understands that to remain competitive, we must keep fighting.
That’s why we have continued to engage with elected officials on a state, county and local level to champion and educate around the need for an uncapped program that includes further modernizations and above-the-line. You will be seeing more on that over the course of this next year.
Below are some important updates from the EUC and how you can continue to remain involved:
SHARE YOUR STORY: HELP KEEP CALIFORNIA ROLLING!
Working on a film and/or television project that is a tax incentive recipient? We are still gathering stories asking you to share about your production that received the incentive, sharing authentic, behind-the-scenes moments that highlight how the tax credit helped make your project possible and why keeping film and TV in California matters to you, to your family and to your community.
To support members looking to share their story, we have launched a form to submit photos and videos that we can post to help get the word out about the type of content we are looking to share. We will also be targeting members working on incentive projects for your story.
LINK TO FORM TO SUBMIT STORY: https://bit.ly/KeepCaliforniaRollingImpact
URGING STATE LEGISLATORS TO SUPPORT EXEMPTING FILM & TELEVISION WORK FROM BUDGET BILL SB 122:
Just as film and television production is beginning to return to California, a budget bill making its way through the state legislature, SB 122, threatens to undermine our California Film & Television Jobs Program 4.0.
SB 122 threatens the viability of the California Film and Television Jobs Program by reneging on commitments made and reducing the competitive structure that we fought so hard for just last year. The credits apply to productions currently shooting in California and productions completed in earlier years. In both cases, workers have already been paid and vendors have already been compensated long before any credits are claimed.
The result of the changes is that production companies will lose the full value of credits already earned in exchange for creating middle-class entertainment industry jobs and other economic benefits to the State.
The EUC, MPA and industry stakeholders alongside a growing list of state lawmakers are urging Governor Newsom and the Legislature to exempt film and TV production incentives from a new corporate tax credit cap they say will “kneecap” Hollywood.
This proposed business tax credit cap does not make sense for our tax credit because it is already capped and allocated. In effect, what SB 122 creates is a double cap.
This week, LA Times had a story highlighting the ongoing and growing efforts to exempt our 4.0 program being led by Assemblyman Rick Chavez Zbur. Read more here.
CBS News CA also did a short segment highlighting the issue and current state of SB 122. Watch here.
With the California State Legislature in summer recess, we are using this month to raise awareness and build momentum so that when they return in August, we can redouble our effort to advocate for an exemption and sound the alarm to the Governor’s office and the Legislature about the potential for disastrous impact on the already fragile recovery of film and TV production in California.
We will be expanding this fight over the next several weeks and calling on members to get involved. Stay tuned.
AB 2403 COMMERCIAL INCENTIVE:
Just this year, the Association of Independent Commercial Producers (AICP) introduced AB 2403, which would establish a California Commercial Production Tax Credit Program with a capped annual allocation of $15 million. The bill is seeking to provide a 20 percent credit for qualified production costs incurred within the Los Angeles studio zone, and a 30 percent credit for qualified production costs incurred outside the zone, thereby encouraging regional economic development across California.
The EUC’s support of this bill was predicated on AB 2403 including provisions such as:
- 75% of the production in California,
- AI protections for workers, limits on what can be called a “commercial,”
- Strong labor standards to ensure pension and health contributions to workers on commercial productions seeking the incentive credit.
AB 2403 passed the Assembly in May and has received strong support as it makes its way through the State Senate. Currently the bill is in the Senate Appropriations Committee until the State Legislature returns from July recess in August. As shared before, this bill is separate and apart from our film and television program meaning the $15million would not come from the 4.0 program and it supports work that is not included in that program. While the legislation has received great support, where we expect to see hurdles is during difficult budget discussions in August re state funding for a wide range of programs. We will keep our members updated on the bills’ progress.
MEETING WITH SUPERVISOR HORVATH:
The EUC continues to sit down with elected officials who want to find ways to support our industry. Just last week we met with the Los Angeles County Board of Supervisor, Lindsey Horvath, to share issues and ideas for constructive support on a County level. Horvath was a critical ally in ensuring the production ‘Baywatch’ could continue to shoot in Venice Beach, understanding the careful balance of production work working alongside various departments, city and county agencies and the community.
“Hollywood and our entertainment industry is too important for Los Angeles County to simply hope someone else will save it,” said Supervisor Lindsey P. Horvath. “Local leaders have an obligation and responsibility in ensuring that we remain the creative capital of the world. That means partnering with labor and studios, pushing for smarter incentives, modernizing how productions work with the government, and fighting for the hundreds of thousands of workers and small businesses whose livelihoods depend on a thriving entertainment economy. Los Angeles County is an active partner in making sure this happens.”
Ongoing discussions have been taking place with Teamsters Location Professionals around improvements that can be made with various public agencies including parks and rec, public works, fire and sheriff departments.
Press Release: https://lindseyhorvath.lacounty.gov/entertainment-union-coalition/
Photos: https://www.flickr.com/photos/198068192@N05/albums/72177720334683624/with/55390381672
Stay tuned for more updates from our Entertainment Union Coalition!