California
Alarming Production Drop Spurs Gavin Newsom to Propose Doubling Tax Credits to Hollywood
MasterChef. Supergirl. The Kelly Clarkson Show. These productions all initially filmed in California but were convinced to leave at least in part due to more lucrative tax credits in others regions. Now, as runaway production and Hollywood cost-cutting threatens the state’s hold on the film and television business, Gov. Gavin Newsom is stepping in.
An early budget proposal looks to vastly increase California’s current cap for a program that provides tax relief to producers across the business from $330 million to $750 million a year, Newsom is set to reveal on Sunday. The expansion would shower as much as $3.75 billion in tax credits to the industry over five years starting in 2025.
If passed, the subsidy would be the most generous offered by any state except Georgia, which doesn’t have a ceiling on the amount it gives to productions per year. That includes New York, Hollywood’s second most-popular destination that California has increasingly been exchanging blows in a fight for productions amid a highly-competitive incentives race to attract Hollywood dollars.
“This means that film production can stay,” says Los Angeles mayor Karen Bass. “It means that all of the jobs that would be lost, because they they would go to another state or overseas, would stay here.”
Further changes to the program have yet to be finalized. Potential amendments could affect the maximum amount a single production can receive in tax relief and what types of expenditures qualify for incentives.
“We’ll be taking into consideration a range of additions and potential fixes to the existing program,” says Colleen Bell, director of the California Film Commission, which oversees film and TV production throughout the state. “Everyone is in the business of luring production away from California. We have to invest in our lead and preserve jobs for Californians so they can do the jobs they love to do and put paychecks in their pockets.”
The move arrives after months of entertainment industry workers in the Los Angeles area speaking out about a lack of employment opportunities in the iconic production hub. In the wake of the 2023 writers’ and actors’ strikes, local crew members and creatives described an anemic return to production as major companies sought to slash costs and the era of Peak TV came to a screeching halt.
For some of these workers, the financial difficulties during the strikes and their aftermath have been significant: people have sold homes, lived out of cars and RVs and frequented food banks, with some leaving the business entirely for other fields. Increasing tax incentives to productions across the state emerged as a proposed remedy for the situation in June during labor negotiations for crew members who belong to the Los Angeles-area Hollywood Basic Crafts union coalition.
A month later, Bass formed a taskforce to promote recovery of the industry in Los Angeles after production was disrupted the pandemic, strikes and industry contraction. Among its top priorities have been expanding the state’s tax film and TV tax credit program.
“This was the number one item on their agenda,” Bass says.
New data released on Oct. 16 shows that filming in L.A. is approaching historically low levels, with the three-month period from July to September seeing the fewest number of shoot days this year. The figure even falls short of shooting in the region during the same time last year, when the industry was halted by the work stoppage. Among the biggest causes for concern is a steep drop in unscripted TV production. Last quarter, shooting for the category fell roughly 56 percent compared to the same period last year. Filming for TV shows, long an anchor of filming in the area, continues to decline as every category of scripted production trails historical norms.
Directors Guild of America associate national executive director and western executive director Rebecca Rhine stresses that production in the state is currently in “real peril.” She adds that the governor’s proposal “provides an important acknowledgement that this is an industry that we want to keep in California.”
According to Rhine, the DGA and other industry unions have “spent a lot of time” talking to Newsom’s administration about their production concerns — “the high level of unemployment, the amount of work leaving the country, the inability to compete effectively with incentives elsewhere,” she says. “And I think that the governor was listening.” Rhine emphasizes that the film industry provides middle-class jobs with benefits to industry workers and brings work to various local vendors and indirect beneficiaries in the state, from dry cleaning services to florists.
Newsom’s proposal aims to mitigate one of the major issues with California’s film and TV tax incentive program: Too many productions applying for the subsidies. These projects, when rejected, leave for other states and countries. Since 2020, the state lost $1.6 billion in spending from productions that applied for but didn’t receive a tax credit, according to the California Film Commission.
“It can’t be denied that one of the primary considerations for where projects shoot is whether they receive a tax credit,” Bell says. “Our program has been oversubscribed for a long time. We have this cap so we’ve had to turn away qualified productions that then go and take their projects elsewhere, along with jobs for Californians.”
With tax credits, productions may more easily be able to stomach higher costs for labor and shooting permits, among others things, in California compared to other regions.
Still, the state will continue to face stiff competition. The 20 percent base credit offered by California is lower than most competitive film hubs, including New York, New Mexico and the U.K. It’s also the only major production hub that bars any portion of above-the-line costs, like salaries for actors, directors and producers from qualifying for incentives. It’s an idiosyncrasy that the U.K. and Canada, another filming hotspot that has the added advantage of beneficial exchange rates and lower labor costs, have leveraged to become premier destinations for features.
California also doesn’t offer a standalone tax credit for visual effects. Several productions outsource postproduction work to countries that offer generous subsidies on this front, resulting in many VFX companies based in the state creating offshoots overseas.
Canada and Australia offer the most lucrative tax relief on this front. Productions can get at least 30 percent of their post, digital and VFX spend back in those regions. In March, the U.K. unveiled a five percent bump and removal of the 80 percent cap for VFX costs in the country to stay competitive.
In addition to increasing the cap, the California Film Commission has cited the lack of a tax credit solely for VFX work to the governor’s office. “We’re in it to win it,” Bell says.
Compared to California, other regions have weathered industry contraction better. Some data indicates that competing international film hubs are seeing flat, or in some cases slightly rising, levels of filming. Last quarter, the U.K. and Canada each saw more live-action, scripted titles with budgets of at least $10 million actively filming within their borders, per data from industry intelligence platform ProdPro.
And it’s not just areas outside of the U.S. either. New York has proved more resilient than California, seeing about 75 percent of 2022 shooting levels.
California
GOP California governor candidates to face off at Clovis forum ahead of primary
With California’s June 2nd primary election nearing, Republican candidates for governor, Steve Hilton and Sheriff Chad Bianco, are set to appear at a forum in Clovis.
The Fresno County & City Republican Women Federated is hosting its “Celebrating 250 Years of America Dinner” and a gubernatorial forum on Friday, May 22nd, at The Regency Event Center, 1600 Willow Ave., in Clovis.
The forum will be moderated by State Senator Shannon Grove.
The discussion is expected to focus on major issues facing Californians, with questions presented via video by a panel of state and local figures, including Fresno County District Attorney Lisa Smittcamp on public safety and crime; former Fresno County Sheriff Margaret Mims on border control and citizenship; William Bourdeau of Bourdeau Farms LLC on water rights and agricultural issues; California state Assemblymember David Tangipa on taxation and fiscal responsibility; Jonathan Keller of the California Family Council on parental rights and education; and Matthew Dildine, CEO of Fresno Mission, on homelessness and mental health.
Clovis Mayor Pro Tem Diane Pearce and Fresno County Supervisor Nathan Magsig are listed as masters of ceremonies.
Doors are scheduled to open at 4:30 p.m., followed by a social hour at 5 p.m. Dinner and the program are set for 6 p.m.
Attire is listed as cocktail or business formal. Organizers said a portion of the proceeds will benefit the Veterans Home of California – Fresno.
GOP California governor candidates to face off at Clovis forum ahead of primary (Courtesy: Fresno County & City Republican Women Federated)
[RELATED] Top-two primary could pit same-party rivals as crowded Democratic field fractures votes
“This forum comes at a pivotal moment for our state,” FCCRWF event organizers said. “Bringing the top Republican gubernatorial candidates to Clovis allows Valley families, farmers, and business owners to get real answers on the issues that affect their daily lives, from water infrastructure to public safety and the skyrocketing cost of living.”
Individual tickets are $150, with discounts offered to FCCRWF members.
Table sponsorships are available at the $1,500, $2,500 and $5,000 levels.
Tickets and sponsorships are available online at FresnoRepublicanWomen.org.
California
Amazon halts high-speed e-bike sales in California following fatal crashes
Orange County’s top prosecutor said Amazon has agreed to stop California sales of certain e-bikes that can go faster than state speed limits following a series of fatal collisions.
The announcement, first reported by KCRA, comes on the heels of an April consumer alert by California Attorney General Rob Bonta that highlighted a rise in deaths related to e-bike and motorcycle crashes.
“We are seeing a surge of safety incidents on our sidewalks, parks, and streets,” Bonta said in a statement. “To ride a motorcycle or moped, you need to have the appropriate driver’s license and comply with rules of the road.”
Bonta’s alert stated that pedal-assisted e-bikes cannot exceed 28 mph. Throttle-assisted e-bikes are limited to 20 mph.
Amazon had continued to sell e-bikes with speeds over 40 mph. Amazon did not immediately respond to a request for comment.
Electric bikes and motorcycles have become increasingly popular in the last few years, particularly among teens. But the surge has been shadowed by a spate of deadly crashes.
Orange County Dist. Atty. Todd Spitzer has charged at least three parents with allowing their children to ride electric motorcycles illegally, calling the vehicles a “loaded weapon.”
Spitzer noted in a post on X that Amazon said it removed e-bikes advertised with speeds over 40 miles per hour after KCRA contacted the company.
“The company said it has removed the examples provided and is investigating compliance for similar products,” Spitzer wrote.
That includes an Orange County mother, who faces an involuntary manslaughter charge after her son allegedly struck an 81-year-old man with an electric motorcycle. The 14-year-old boy had been doing wheelies on an e-motorcycle
A 13-year-old boy on an e-bike in Garden Grove died earlier this week after veering into the center median and hurtling onto the roadway. The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle, authorities said.
Amazon’s new sales limits come as the Los Angeles City Council pushes to keep electric bikes of off most city recreational trails, arguing they are a threat to hikers. E-bikes would still be allowed on designated bikeways, such as along the L.A. River.
California
After exile, California tribes could help run their ancestral redwoods again
Daniel Felix, 10, looks out from atop a gargantuan stump of an old-growth redwood on his tribe’s ancestral land. Once, this forest on California’s North Coast was replete with the ancient behemoths that can live beyond 2,000 years.
Only a fraction are left now, depleted by a logging company before the state acquired the forest in the 1940s.
This is unique public land, Jackson Demonstration State Forest, spanning 50,000 acres. Trees are plentiful here, but they might not live a millennium. California’s 14 demonstration forests are required to produce and sell timber to show — or “demonstrate” — sustainable practices. Money from logging — roughly $8.5 million a year — pays for management of the forests by the California Department of Forestry and Fire Protection, or Cal Fire.
Daniel’s tribe, the Coyote Valley Band of Pomo Indians, has pushed to rein in the cutting — spearheaded by his late great-grandmother, Priscilla Hunter. They’re part of a diverse coalition that includes environmental activists, local politicians and other tribes.
Now they may finally get their wish. Assemblymember Chris Rogers (D-Santa Rosa) has introduced a bill that would nix the forests’ logging mandate, instead prioritizing values such as carbon storage, wildfire resilience and biodiversity.
The bill represents the latest chapter in a region legendary for fierce battles over logging, and it marks an uncommon alliance between tribes and the environmental movement.
Under Assembly Bill 2494, there could still be logging, but it would have to support those new principles, and the forests would be funded differently.
And it proposes another significant change. It would pave the way for giving tribes a say in managing the lands for the first time since they were forcibly evicted more than a century ago, and for integrating Indigenous knowledge — like cultural burning — into the forests.
“It’s what we dreamed of,” said Polly Girvin, Hunter’s former partner and a retired lawyer focused on Native American issues. “And to have it come true? I’m used to movements that sometimes take 30 years in Indian Country to get to the justice you’re seeking.”
Kids play in the stump of an ancient redwood during a potluck held after the spirit run in Jackson Demonstration State Forest last month.
(Paul Kuroda / For The Times)
Some backers say the bill offers a new economic path forward for communities behind the so-called redwood curtain. With the decline of logging and cannabis, they see tourism driven by ultramarathons, mushroom foraging and other outdoor activities as a financial savior.
“If we had an increase of 10% of visitors coming to our county because of recreational opportunities, that would more than surpass all of the timber tax in our county,” Mendocino County Supervisor Ted Williams said, projecting an increase in money from a lodging tax.
But the push to reshape forest management is fiercely opposed by loggers and mill owners, who say their work is sustainable and provides blue-collar jobs in a region where they’ve dwindled. Already California imports most of its wood from Oregon, Washington and Canada.
“California has the most rules and regulations of anywhere in the world so all they’re doing is exporting the environmental impact to somewhere else, still using the product,” said Myles Anderson, owner of a logging company in Fort Bragg founded by his grandfather. “It’s pretty disgusting, really.”
Anderson believes the bill will greatly reduce logging, even stop it altogether. In his office, with photos of him and his father at a logging site decades ago, he points out it’s sponsored by the Environmental Protection Information Center. Why else would they and other environmental groups “support it if they didn’t see the same thing that I’m seeing?”
Last month, activists who have sought to rein in logging at Jackson held their first major gathering in about four years, galvanized by the bill that they see as a significant step in the right direction.
(Paul Kuroda / For The Times)
A new but old fight
About five years ago, community members caught wind of plans to chop down towering redwoods within Jackson, near the coastal town of Caspar. Priscilla Hunter would come out to the forest “and could hear them crying — it was our ancestors,” said her daughter Melinda Hunter, the tribe’s vice chairwoman. “Then she had to protect [the trees].”
Environmental activists and Native Americans, not historically allies in the region, joined forces to fight it. “Forest defenders” camped out high in the canopy and blocked logging equipment with their bodies. Some were arrested.
The uprising harked back to the 1980s and 1990s, when iconic environmentalist Judi Bari led Earth First! campaigns against logging in the region. Many of the old tree sitters — white-haired and brimming with stories of Bari — have come out of the woodwork for the latest battle.
For them, it was a win. Cal Fire paused new timber sales and, citing public safety, halted some that were underway — including one expected to generate millions of dollars for Myles Anderson’s logging company.
“We were left with nothing,” Anderson said.
Then, last year, Cal Fire approved the first harvest plan since that hiatus. It riled up the sizable, ecologically minded community.
Jessica Curl, 47, remembers growing up nearby “in a terrain of trunks” as trucks carried out logs. Now the redwoods are regrowing, “gorgeous” and gobbling carbon, she said.
“We’re so lucky to live in an area where we have this amazing climate-change mitigation tool, that if we would just leave it alone would do this amazing work that we’re trying to think of all these cool, inventive things to do.”
Isidro Chavez receives burning sage, or smudging, after a run in Jackson Demonstration State Forest. Smudging is a ritual used to cleanse spaces and individuals of negative energy, promote calm and improve mood.
(Paul Kuroda / For The Times)
Tears of grief, resolve
A group of “spirit runners” — a Native American tradition of bringing prayer — sprinted through the heart of Jackson forest as rain poured through the canopy. The mid-April event marked activists’ first major gathering since protests wound down in 2022.
Attendees gathered in a circle to wait for them. Misty Cook, of the Sherwood Valley Band of Pomo Indians, read a statement as eyes misted all around:
“All the living things around us, they miss us. They miss the language. They miss our touch, our hands, touching all of the things — the water, the plants. They miss the songs. They miss the beat of our footsteps and our voices, and they miss the children’s laughter and play, which was so important. They want us to gather them, to use them and to share them. Otherwise they will get sick and possibly die.”
Cal Fire launched a tribal advisory council to bring Indigenous perspective into Jackson. But some local tribes say it’s not enough because they lack decision-making power.
When the runners arrived, the circle absorbed them. Then they continued on to the site of a controversial proposed harvest, Camp Eight. They wrapped a bandana that belonged to Priscilla Hunter around a small tree — a quiet, somber act where she took her last stand. Runners took turns embracing the trunk.
Redwoods at the Capitol
In March, Rogers’ bill cleared a committee and is now in the Assembly Appropriations Committee’s suspense file. A hearing is set for Thursday.
Funding is a major point of contention. Environmentalists say funding these forests with timber operations incentivizes cutting bigger trees. Cal Fire maintains decisions are driven by forest health, not industry demand.
AB 2494 would fund the forests through a tax on lumber and engineered wood products. The shift could create “[o]ngoing state costs and cost pressures of an unknown but potentially significant amount, possibly in the low millions of dollars annually,” according to a legislative analysis.
The California Forestry Assn., a timber industry trade group, says the idea is a nonstarter.
Cal Fire declined to comment on pending legislation but Kevin Conway, the agency’s staff chief for resource protection and improvement, said its nearly 80-year history managing Jackson reflects “care and attention.” Since the state acquired the forest, “we have more trees on the landscape, more habitat and those trees are trending larger,” he said.
For the tribes who have rallied and prayed, a burning question is whether the land will again reflect their vision, or remain shaped by decisions made by others.
Buffie Campbell, executive director of the InterTribal Sinkyone Wilderness Council — co-founded by Priscilla Hunter and one of the groups supporting the bill — said young people wouldn’t be able to fathom the significance of the legislation passing. Maybe that’s a good thing.
“Maybe they don’t need to know about all the fighting that we have to do before they get to go out and enjoy and be tribal guardians stewarding their land.”
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