California lawmakers are moving to increase the payout to subsidized film and TV productions in the Los Angeles area to 35%, while expanding the range of productions that qualify.
The current program provides a credit of 20% or 25% to live-action films and scripted TV shows. Under legislative language submitted on Tuesday night, eligibility would be expanded to animated films and TV shows, sitcoms and “large-scale” competition shows.
Gov. Gavin Newsom promised last fall to increase the program from $330 million per year to $750 million, as the state’s production workforce struggles with a severe downturn.
A bill, SB 630, was introduced last month to implement the increase.
California’s two largest competitors — Georgia and New York — offer 30% rebates, and include among eligible costs the “above the line” salaries of actors, directors, producers and writers.
Lawmakers introduced an amended version of SB 630 on Tuesday, which would increase the rebate to 35% for wages and other expenses incurred within the Los Angeles zone. The zone includes anything within a 30-mile radius of Beverly and La Cienega boulevards (the historic home of the Association of Motion Picture and Television Producers), as well as certain other locations like Castaic, Pomona and the Ontario airport.
The current program limits TV shows to those with episodes of at least 40 minutes, excluding sitcoms and other half-hour shows. If approved, SB 630 would lower the threshold to 20 minutes, allowing sitcoms to qualify.
“Veep,” the 30-minute HBO show, was eligible for $20 million in incentives for its final three seasons, but only because it relocated from Maryland.
The program would also become eligible to animated films, shows and shorts with a minimum budget of at least $1 million. The bill would also allow “large-scale” competition shows to qualify, also with a minimum budget of $1 million, though it would not include game shows, reality shows, talk shows or documentaries.
The bill would also offer a 5% bonus to shows that film in an “economic opportunity zone.” The bill would also loosen the eligibility requirements for a separate incentive for soundstage construction. Under the current rules, those incentives have all gone to one project: the expansion of the Universal lot.
A hearing is set to be held on the expansion before a state Senate committee today. Sen. Ben Allen and Assemblymen Isaac Bryan and Rick Chavez Zbur have taken the lead on the legislation. The amendment adds several new co-authors.
See all amendments at link below.