Senator Portantino Bill Seeks to Extend Film & TV Tax Credit for Five Years
For Immediate Release: December 21, 2021
Contact: Lerna Shirinian, (818) 409-0400
Senator Portantino Bill Seeks to Extend Film & TV Tax Credit for Five Years
Sacramento, California – Senator Anthony J. Portantino (D – La Cañada Flintridge), along with an impressive list of co-authors, announced today that he is amending Senate Bill 485 to extend the current film and television production tax credit program for five more years. Earlier this year, Senator Portantino introduced SB 485 to ensure California remains a global leader in entertainment production by investing in the expansion and modernization of studio infrastructure. The investments proposed in SB 485 were incorporated into SB 144 (authored by Senator Portantino and Assemblymembers Burke and Carrillo) and signed by Governor Newsom in July. SB 144 included a $180 million increase to the current film and television tax incentive program and $150 million for a new incentive tied to the construction of soundstages.
“The success we have had with California’s film tax credits has helped bring back significant productions back to where they belong and created thousands of good-paying middle-class jobs,” stated Senator Portantino. “With the extension of the current credit, we can ensure that we continue to bring back more jobs and sustain job creation for years to come. Long-term investment means that we can have generations of entertainment careers created in California and will allow us to remain competitive with other states. Long-term investment in new sound stages will also yield to thousands of jobs, millions of dollars in wages and billions of dollars of economic benefit for California.”
Since inception, California’s film tax credit programs have generated $17.9 billion in production spending for the state. During the increase in activity, construction of soundstages has not kept pace with the growth in film production, scripted television, and streaming content. In addition, the current program faced a two-year shortfall. Seizing the opportunity to address both issues, Senator Portantino paired up with the State Building and Construction Trades Council to introduce SB 485 earlier in the year. That effort and continuing budget negotiations led to the successful passage of SB 144.
SB 144 expanded the credit allocation available under the Film and Television Tax Credit 3.0, establishing a new credit for qualified motion pictures produced on a certified studio construction project, and increased the credit percentage when specified diversity goals are met. SB 144 was part of a three-party budget agreement between the Governor, the State Senate and the State Assembly. The measure was co-authored by Assemblymember Autumn Burke, Chair of the Assembly Revenue and Taxation Committee, and Assemblymember Wendy Carrillo.
Senator Henry Stern, Senator Scott Wilk, Assemblymember Autumn Burke, Assemblymember Wendy Carrillo are principal co-authors of SB 485 and Assemblymember Carlos Villapudua is a co-author. It is the Senator’s hope to work closely with his colleagues and the entertainment industry and guilds to update and improve the current tax credit program.
“The industry has had a decade to determine what has worked well, what hasn’t, and where we need to go to strengthen California’s position as the world leader in content production. I’m looking forward to our work ahead,” concluded Portantino.
Senator Portantino represents the 25th State Senate District, which includes the cities of Burbank, Glendale and Pasadena and is home to important film locations and historic studios. He serves as the Chair of the Senate Committee on Appropriations.
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