Supervisor Barger Champions Governor’s Entertainment Tax Credit Plan – Pasadena Now

Los Angeles County Supervisors will vote November 6 on a motion supporting Gov. Gavin Newsom’s October 27 proposal to more than double California’s film and television tax credit program, aiming to stem the exodus of entertainment production from the state.

Supervisor Kathryn Barger, who represents Pasadena, and Board Chair Lindsey P. Horvath’s motion would direct the County’s lobbying arm to back Newsom’s plan to increase the annual tax credit allocation from $330 million to $750 million.

“This motion is yet another way we as County leaders can show our support for the Industry in Los Angeles County,” Barger said. “Governor Newsom’s latest proposal would deliver much welcomed tax relief for many and will go a long way in supporting businesses in the region that are truly struggling.”

If approved by the Legislature, the expanded tax credit program could take effect as early as July 2025.

The expansion would come as the region’s entertainment industry faces mounting challenges. The 2024 Otis Report on the Creative Economy revealed California lost 70,840 creative economy workers in 2023, an 8% decline. With 27% of the nation’s domestic film and television workforce residing in Greater Los Angeles, FilmLA’s report of a 19.7% drop in local production in 2023 has raised significant concerns.

Over the past three years, California has lost market share to competitors including the United Kingdom, Ontario, New York, and Georgia. The California Film & Television Tax Credit Program, launched in 2009, has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs. Last year, Newsom extended funding for five years and added a new refundable feature allowing studios to receive cash payments if credits exceed their tax bills.

“Los Angeles County fully supports Governor Newsom’s expansion of the California Film and Television Tax Credit,” Horvath said. “This vital action, coupled with the County’s investments in the small businesses that power the entertainment industry, will help ensure Los Angeles County remains the beating heart of the creative economy.”

The motion builds on the Board’s September 26, 2023 action directing the Department of Economic Opportunity to explore incentivizing filming by removing regulatory hurdles and considering tax reductions and fee waivers.

The new measure directs the department to collaborate with Los Angeles Mayor Karen Bass’s Entertainment Industry Council to identify best practices and opportunities for implementation across all 88 County cities, with a report due back to Supervisors within 60 days.