Business
Will Newsom's expanded tax credit program save California's film industry?
Amid mounting pressure from Hollywood to bring production and entertainment jobs back to California, Gov. Gavin Newsom unveiled plans Sunday to significantly raise the annual cap on the state’s film and TV tax incentive program.
During a news conference held at Hollywood’s Raleigh Studios and attended by Los Angeles Mayor Karen Bass, as well as several entertainment union officials, Newsom declared his intent to increase the yearly limit to $750 million from $330 million.
Pending legislative approval, that number would surpass all other capped film and TV tax credit programs around the country. But will it be enough to prevent film and TV shoots from fleeing the state, restore the entertainment job market and solve California’s worsening production crisis?
Many in the industry welcomed the announcement as a significant move in the right direction, while acknowledging that there is more work to be done.
“It’s a start,” said Lindsay Dougherty, principal officer of Teamsters Local 399, which represents studio drivers, location workers and other Hollywood crew members.
“For California to be competitive with these other countries, we might need more money down the road. But this is … good news in a very bad time in a for our members that are not working and haven’t been working for quite some time.”
Rebecca Rhine, western executive director of the Directors Guild of America, agreed that raising the limit “may not be the entire solution, but it is a very, very important first step.”
Newsom and other elected officials have faced growing calls to expand California’s film and TV tax credit program as local production has struggled to rebound in the wake of last year’s strikes by Hollywood writers and actors.
While the entertainment industry at large has been hurting amid a widespread industry contraction, California has been hit particularly hard. Productions are increasingly flocking to other states and countries — such as New York, Georgia, Mexico and the United Kingdom — that offer more generous tax incentives.
The governor’s office said Sunday that 71% of projects excluded from California’s film and TV tax credit program have opted to shoot elsewhere.
Newsom “needed to make this announcement now,” said Kevin Klowden, executive director of the Milken finance institute.
“The morale and the impacts are very real and … if the governor didn’t make an announcement in advance of the budget cycle, there would be an incredible level of uncertainty,” Klowden said.
Runaway production has had an adverse effect on entertainment workers, as well as ancillary businesses, such as prop houses and caterers, that depend on Hollywood to survive.
Gregg Bilson, whose Sunland-based ISS Props has served the industry for three generations, called the governor’s proposed rebate “a great step as it more than doubles our current incentive,” but also recognized that it still doesn’t put the state on par with some other regions.
“Is it enough to be competitive with other parts of the world? No, and it never will be when you look at the income disparity and that other countries are giving as much as 40%,” Bilson said.
“But it is very competitive given it’s in California, which has the greatest infrastructure and crews in the world.”
This year, Bass appointed an entertainment industry task force to address the challenges Hollywood is facing.
Ellen Goldsmith-Vein, chief executive of Gotham Group and the mayor’s task force’s chair, said she is glad the state is “moving towards … putting people back to work and creating opportunities for young people.”
Newsom’s proposal will probably help increase some of the production that has dropped off in California in recent years, said Vanessa Roman, partner at Akin Gump Strauss Hauer & Feld, who advises clients in the entertainment industry. Especially smaller independent producers.
Under California’s current tax credit cap, a handful of productions could get approved early in the year and take up most of the credits.
“It was used up pretty quickly,” she said. “When it comes to tax credits, more is always better.”
Motion Picture Assn. Chief Executive Charles Rivkin said Newsom’s proposal indicated the governor’s “commitment to securing California’s future as a leader in film, television and streaming production.”
Others were more skeptical.
Newsom’s proposed increase to the California film and TV tax credit was “long, long overdue,” said Jody Simon, a partner at law firm Fox Rothschild.
Although an expanded cap may bring some production back, other states have gotten a leg up by building competing hubs with experienced crews and studio facilities.
“Some of the intrinsic advantages of L.A. have been eviscerated,” he said. “I believe there’s still an underlying preference to shooting in L.A., so hopefully this brings more production back.”
Vince Gervasi, president of Santa Clarita-based Triscenic Production Services, called the proposed tax incentives “a drop in the hat.”
“It sounds like a lot of money when you say it’s $400 million more, but in the big picture, it’s nothing like what Georgia is giving out,” said Gervasi, who added that he is struggling to keep his set and scenery storage business afloat. “It’s a nice gesture, but a little too late.”
The higher cap is “a big yawn for” independent productions, said Sky Moore, a partner at law firm Greenberg Glusker.
California’s tax credit program has more limitations on qualifying expenses — excluding big-ticket items such as star and director salaries — and is more complicated. Add to that the lower labor costs in other states, and “I don’t think it’s going to have an impact, at least for the independents,” he said.
Kayla Kitson, a senior policy expert at the California Budget and Policy Center, expressed concerns that greater state funding for the film and TV tax credit program could result in less aid for vulnerable groups, such as people experiencing homelessness and food insecurity.
“When the state has budget shortfalls, we often see safety net programs … on the chopping block,” Kitson said.
If the Legislature approves, the lid on California’s film and TV tax credit program could be raised to $750 million as soon as July.
“We hope that the legislators see the urgency in what the governor is trying to accomplish,” said Thom Davis, president of the California IATSE Council. (IATSE is the union representing Hollywood crew members.)
“Especially those in the L.A., San Francisco, San Diego areas where this is a very important industry to not only our members, but also their local economies.”
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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