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A lifeline for Hollywood jobs or a corporate giveaway? The film tax credit debate returns

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A lifeline for Hollywood jobs or a corporate giveaway? The film tax credit debate returns

It’s showtime for Hollywood at the California Capitol.

The state’s entertainment industry has spent months begging for help from Sacramento to stem the decline of film and TV production and save thousands of jobs.

This week, after months of speeches and promises from public officials, two bills meant to boost the beleaguered business cleared their first legislative hurdles.

The bills are intended to make California’s film and TV production incentive more competitive with other states and countries by increasing the tax credit up to 35% of qualified expenditures and expanding the types of productions that would be eligible.

It’s a potential lifeline for the entertainment industry, which has been battered in recent years by production slowdowns wrought by the pandemic, the dual writers’ and actors’ strikes in 2023, a pullback in spending by the studios, the recent Southern California wildfires and productions fleeing the Golden State.

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“We don’t want to become the car industry in Detroit or aerospace in California,” said Rebecca Rhine, president of the Entertainment Union Coalition and Western executive director of the Directors Guild of America. “When our industry thrives, we think California thrives.”

The bills won unanimous votes out of the state Senate revenue and taxation committee and the Assembly arts and entertainment committee.

But despite Gov. Gavin Newsom’s initial call last year to more than double the money allocated to the state’s film and TV tax credit program, passage of the two bills is far from a done deal.

Critics have been skeptical of the film and TV tax credit program since it was introduced in 2009 under former Gov. Arnold Schwarzenegger. Some say the tax credits are corporate giveaways and don’t deliver as much economic value as proponents claim.

“The economy does best when government doesn’t pick winners and losers,” said Wayne Winegarden, senior fellow of business and economics at Pacific Research Institute, a California-based think tank that advocates for free markets. “This is not the right way to get a pro-growth fiscal business environment that accelerates job growth.”

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Additionally, California now faces a difficult economic outlook, as officials brace for potential cuts in federal funding, as well as tariff-related pressures on state revenues and stock market volatility that could reduce tax collections that fund state programs.

That all forces difficult questions for legislators about which priorities to fund.

In a recent post on X, Assemblymember Corey Jackson said Democratic voters in California “should be outraged that we aren’t spending more on housing, allowing seniors to fall into homelessness, and allowing so many children to live in poverty. For corporate and movie studio tax breaks.”

Reached by phone, Jackson said that while expanding film and TV tax credits is a worthy policy, state lawmakers must consider what they’d have to sacrifice for them, particularly as the state budget is under stress.

“If we were back in the period where we have more money than we can spend, this would be a no-brainer,” Jackson said. “But it’s time to bring people back to reality. This should not just be a slam-dunk to people.”

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Hollywood workers argue that an expanded film and TV tax credit would generate economic returns beyond the industry, with ripple effects touching tourism as well as small businesses such as dry cleaners, florists and caterers that rely on entertainment spending. And after years of struggles, workers say the industry is at an inflection point.

That has led to a major lobbying effort on Hollywood’s part.

More than 100,000 letters have been sent to individual state lawmakers in support of the bills, with an additional 22,000 letters sent to the Senate revenue and taxation committee.

Dozens of representatives from all of the major entertainment industry unions trekked to Sacramento to support the legislation, as did studio executives, their lobbyists and the Motion Picture Assn. trade group.

It’s the kind of show of force State Sen. Ben Allen and Assemblymember Rick Chavez Zbur, two of the bills’ co-sponsors, had called for when they spoke to a crowd last week at Burbank’s Evergreen Studios recording facility and urged entertainment workers to contact their representatives.

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“It’s going to be a fight to get this done because of the headwinds,” Allen told the crowd, noting that there are many competing priorities at the state level. Just the mention of the legislation was enough to elicit applause and cheers from the audience.

Industry insiders and lawmakers, including at the Burbank town hall, have tried to fend off criticism that this is a gift to corporations.

They described them as jobs bills that will reward the productions that generate the most employment and will not allow companies to use the tax credits until after production has wrapped.

California currently provides a 20% to 25% tax credit to offset qualified production expenses, such as money spent on film crews and building sets. Production companies can apply the credit toward any tax liabilities they have in California. Raising the credit to 35% is significant, supporters say. Projects that shoot elsewhere in the state could get a credit of 40%.

The legislation also would expand the types of productions that would qualify, including animated films, shorts and series, along with large-scale competition shows. Independent productions will be allocated 10% of the total amount in the program, up from the current 8%.

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“In some respects, the headwinds have actually strengthened the bill,” Allen told The Times. “They’ve forced really careful, intense, thoughtful, targeted conversations and negotiations.”

Outside of Hollywood, the bills have the backing of the California Labor Federation, whose executive council unanimously voted to support the legislation in February, said President Lorena Gonzalez.

Though the organization is not always supportive of tax credits, the federation has always supported the film and TV program, she said.

“The fact is the unique situation with Hollywood being so unionized,” said Gonzalez. “In order to preserve those good union jobs and the middle-class lives that are developed as a result, we’d like to keep those jobs here.”

The lobbying effort has led to unusual alliances, particularly in the wake of the strikes, with both studios and Hollywood unions rallying on the same side. Both groups, however, have worked together on previous film and TV tax credit proposals.

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In a letter to the leaders of the Assembly committee on revenue and taxation, Motion Picture Assn. Chief Executive Charles H. Rivkin wrote that the changes to the film and TV tax credit program would “help attract more productions and jobs in California.”

If the bill were enacted, he wrote, the studios will submit more applications to the California Film Commission, “leading to locating more of their productions in California, which will create and retain good jobs for Californians.”

But even within Hollywood’s overall push, there are differing priorities among stakeholders. During the Burbank town hall meeting, postproduction workers and music scoring professionals called for carve-outs, noting that other states and countries now offer specific rebates for this work.

That has led to a steep decline in production for these workers. The average number of booked recording days for a sampling of L.A.’s scoring stages is now 11 days for 2025 so far, a far cry from the average of 127 days for all of 2022 during the peak of the streaming boom, said Peter Rotter, founder of Encompass Music Partners, who helped organize the town hall.

Much scoring work has moved to Europe or even Nashville, while some postproduction work has been diverted to places like Canada and London.

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”It’s going to take a village,” Rotter told The Times. “We have one shot at this right now.”

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Video: Jan. 6 Rioter Hired by Pentagon

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Video: Jan. 6 Rioter Hired by Pentagon

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Jan. 6 Rioter Hired by Pentagon

Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

“Full pardon or commutation?” “Full pardon.”

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Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

By Alisa Shodiyev Kaff

June 4, 2026

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats splintered over a resolution seeking to block the U.S. from assisting Israel’s war against Hezbollah, an Iranian-backed terrorist group, on Thursday. 

The measure, offered by progressive Rep. Rashida Tlaib, D-Mich., would require President Donald Trump to withdraw U.S. forces from Lebanon. For months, Israel and Hezbollah, a U.S.-designated terrorist group and Iranian proxy, have been at war in southern Lebanon, but the United States has not joined the conflict.

A bipartisan coalition of lawmakers, including House Minority Leader Hakeem Jeffries, D-N.Y., rejected the measure. Critics argued the resolution could aid Hezbollah and potentially hamstring U.S. military operations in the country. 

Tlaib’s resolution failed 92-324, with more than half of House Democrats joining nearly all Republicans to vote it down.

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The Lebanon war powers resolution divided Democrats, with House Minority Leader Hakeem Jeffries, D-N.Y., joining Republicans in rejecting the measure. (Aaron Schwartz/Bloomberg)

REP RASHIDA TLAIB MOVES TO BLOCK US OPERATIONS IN LEBANON BUT IGNORES HEZBOLLAH

Rep. Thomas Massie, R-Ky., an Israel critic, was the lone Republican to support Tlaib’s measure. Meanwhile, Reps. Derek Tran, D-Calif., and Betty McCollum, D-Minn., voted present.

House Democratic leaders said shortly before the vote they would oppose Tlaib’s resolution and work with the progressive lawmaker on a narrower measure exempting some U.S. military operations in the country. Their statement also denounced Hezbollah as a “violent terrorist organization” and a “sworn enemy of the United States.”

Tlaib, who has accused Israel of committing “ethnic cleansing” in Lebanon, did not mention Hezbollah in her resolution. She and other proponents of the measure also avoided discussing the Iranian proxy force during heated floor debate over the measure. 

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Republicans highlighted the omission and accused the legislation’s supporters of serving as “proxies for Hezbollah.”

“Apparently they don’t want to see Israel killing Hezbollah, even though it’s Hezbollah that is killing Israeli children, Israeli adults, Israeli elders,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said Wednesday, referring to his Democratic colleagues.

Tlaib asserted that her resolution would only affect U.S. forces actively engaged in hostilities. Republicans, however, disputed that claim and suggested it would hurt U.S. efforts to counter Hezbollah. 

“It doesn’t say anything about [whether] you can keep the Marines that are in the embassy,” Mast said, referring to the U.S. embassy in Beirut. “That’s a pretty big oversight. It doesn’t say anything about whether we can keep United States armed forces that are training missions with the LAF [Lebanese Armed Forces]. Again, pretty big oversight.”

Rep. Rashida Tlaib, a Democrat from Michigan, attempted to bar U.S. forces from joining Israel’s war in Lebanon. (Tierney L. Cross/Bloomberg)

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RASHIDA TLAIB HIT WITH HOUSE CENSURE THREAT, ACCUSED OF ‘CELEBRATING TERRORISM’ IN PRO-PALESTINIAN SPEECH

The debate turned personal when Rep. Max Miller, R-Ohio, a member of the House Foreign Affairs Committee, linked Tlaib to Hezbollah.

“Hezbollah is a terrorist organization … and its members are butchers that you like to hang out with to a certain extent,” the Ohio lawmaker said, referring to Tlaib.

A shouting match between the two then broke out, with Tlaib demanding that Miller’s remarks be stricken from the record.

The presiding chair ultimately complied with her request, but Miller doubled down on his remarks.

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“Yes, I said it. I own it, and I stand by it,” Mast said on behalf of Miller on the floor.

Tlaib’s failed war powers resolution comes as Iran has sought to tie Israel’s invasion of Lebanon to its ceasefire negotiations with the United States.

Hezbollah, which has long helped Iran project power in the region, rejected a ceasefire agreement between Israel and Lebanon’s government Thursday.

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Senate rejects an initial attempt to ban Trump’s $1.8-billion ‘anti-weaponization’ fund

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Senate rejects an initial attempt to ban Trump’s .8-billion ‘anti-weaponization’ fund

Initial efforts in the Senate failed Thursday to block the $1.8-billion fund that the Trump administration has sought to establish to pay people who claim the government wronged them, though further attempts were likely to come Thursday afternoon.

Republicans narrowly voted down a Democratic amendment to ban the payout fund and then Democrats killed a Republican amendment, which would have prohibited the use of federal money for the fund but would have sent $1.7 billion to the Justice Department’s fraud division.

It was the second effort in Congress to rebuke President Trump in two days, following the House vote Wednesday to rein in Trump’s war powers in Iran.

The dueling amendments were proposed by Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Thom Tillis (R-N.C.). They were attached to the reconciliation bill that would fund Immigration and Customs Enforcement and the Border Patrol, a high priority for Republicans.

The votes came as the Senate began a “vote-a-rama,” during which lawmakers were expected to propose a stream of amendments to the immigration bill on various topics.

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The Trump administration’s plan for the payment fund — widely seen as a way for Trump to compensate his political allies, including those who participated in the Jan. 6, 2021, attack on the Capitol — set off particular ire from some GOP lawmakers.

The plan has fueled growing unrest within parts of Trump’s party over his governance, compounded by the president’s endorsement of primary challengers to Sens. John Cornyn (R-Texas) and Bill Cassidy (R-La.), as well as Rep. Thomas Massie (R-Ky.), which angered some Republican senators.

Cassidy, who lost his primary and has since voiced strong opposition to Trump’s $1.8-billion fund, became a key player in the Thursday votes, voting down Schumer’s amendment but supporting Tillis’.

On Wednesday, Cassidy joined with Sen. Cory Booker (D-N.J.) to argue in a court filing that the $1.8-billion fund circumvents Congress’ authority and violates the Constitution’s spending and appropriations clauses.

“It is an unconstitutional attempt to spend the People’s money without Congressional approval,” Cassidy and Booker wrote in an amicus brief filed in the federal court case challenging the fund.

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The fund was created by the Justice Department to settle a lawsuit brought by Trump against the Internal Revenue Service over the leak of his tax returns. Trump and his sons agreed to drop their personal lawsuit against the government in exchange for the creation of the $1.776-billion fund. Critics immediately questioned the plan, and it drew a rare backlash from Republicans.

In late May, GOP senators derailed plans to vote on the immigration bill over their displeasure with the payout fund and with Trump’s desire to use taxpayer funds for his planned White House ballroom. Senate Republicans removed the ballroom funding from the immigration package Wednesday, another setback for Trump.

The Trump administration sought to back away from its plans for the fund this week, following bipartisan outcry and a federal court ruling that temporarily blocked any payouts from the fund. Acting Atty. Gen. Todd Blanche said Tuesday the administration would end its plans to move ahead with the concept.

But Trump on Wednesday told reporters he didn’t know whether the fund was dead, calling it “a beautiful thing.”

After Schumer proposed the first amendment to ban the fund Thursday morning, the Senate came to a standstill as three key Republican senators deliberated. Schumer framed his effort to ban the fund Thursday as a way to force a referendum on Trump’s plan.

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The amendment “offers Republicans a choice: Do you support Donald Trump’s $2 billion taxpayer-funded slush fund, or do you want to protect the American people and their paychecks?” Schumer said on the Senate floor before the vote.

Sen. Bernie Moreno (R-Ohio) urged Republicans to reject the amendment, saying Democrats were planning to “play so many games” on Thursday during the marathon session.

“We are going to fund immigration enforcement and border patrol, and I urge my Republican colleagues to stay united on that singular mission,” Moreno said.

The amendment failed after Cassidy voted against it. Republican Sens. Susan Collins of Maine, Jon Husted of Ohio and Dan Sullivan of Alaska voted in favor.

Schumer’s amendment was uniformly supported by Democrats, including California Sens. Adam Schiff and Alex Padilla.

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Tillis, who also voted against Schumer’s amendment, immediately proposed his amendment. Sen. Jeff Merkley (D-Oregon) urged Democrats to oppose it, saying that the proposal would create “a new slush fund” by giving the money to the Justice Department.

“We heard over the last 48 hours that the acting attorney general said that this fund’s not moving forward. All this amendment does is codify what I believe the policy of the DOJ is,” Tillis said on the floor before voting began on his amendment. “This [fund] is unpopular, this administration has said they’re not moving forward with it; this is an opportunity for us to put it to bed.”

Responded Merkley: “Taking one slush fund and eliminating it and then creating a new slush fund still under control of the attorney general is not the way to go. The way to go is to get rid of these slush funds altogether.”

Trump has faced a recent string of failures, including the House vote Wednesday, a court ruling to remove his name from the Kennedy Center and a record-low approval rating among Americans as concern rises about economic issues, gas prices and Trump’s war with Iran.

On Wednesday, Trump lashed out against the four Republicans who backed the House war powers resolution, calling it “an unpatriotic thing” to do and calling the vote “meaningless.”

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“They’re GRANDSTANDERS! They should be ashamed of themselves. MAGA!!! President DJT,” Trump wrote.

Times staff writer Ana Ceballos, in Washington, contributed to this report.

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