Senator Portantino Requests Clarification on Loan-Out Policies for Entertainment Industry Workforce
For Immediate Release: May 29, 2024
Contact: Lerna Shirinian, (818) 409-0400
Senator Portantino Requests Clarification on Loan-Out Policies for Entertainment Industry Workforce
Sacramento, CA – Earlier today, Senator Anthony J. Portantino (D – Burbank) expressed concern regarding potential policy changes being implemented for loan-out corporations within the entertainment industry. In a letter to the California Employment Development Department (EDD), the Senator asked for clarification in regards to the policy changes and requested that the targeting of loan-out companies be suspended until an explanation was provided.
“The entertainment industry and its workforce are an integral part of California’s economy,” stated Senator Portantino. “After reading reports about potential policy changes and hearing from concerned constituents, I have submitted a letter to EDD asking for clarity as to why a new policy is being implemented for loan-out companies. In recent years, our state’s entertainment industry has faced significant challenges and any new policies that can be burdensome and have negative consequences for its workforce should be avoided.”
In 2022, Senator Portantino authored SB 485 to extend California’s Film and Television Tax Credit Program until 2030. Following negotiations with the Governor, the proposal was included in last year’s budget. The $330 million-a-year program was extended an additional five years through fiscal year 2030-31 and will create an estimated 60,000 jobs, with $10 billion of investment over that time. The program has always been important for the Senator’s constituents because of the economic benefits it provides to the Los Angeles region and California as a whole.
Governor Newsom also signed Senate Bill 144, authored by Senator Portantino, in July 2021. The bill included $150 million for a new incentive tied to the construction of soundstages, which modernizes studio infrastructure, creates good paying jobs, and ensures that California will remain the entertainment capital of the world.
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*Attached: Letter to the California Employment Development Department (EDD)
