Overall in-state spending by projects in California’s Film & TV Tax Credit Program grew by more than $200 million, from $2.1 billion to $2.3 billion, during fiscal year 2021-2022, according to an annual progress report released by the California Film Commission.
The report also found projected spending by projects entering the tax credit program during the first half of the current fiscal year (July 1, 2022 – June 30, 2023) is already on track to reach $1.6 billion, suggesting the growth trend will continue.
In addition, the report shows total estimated spending by projects halfway through the current five-year tax credit program (launched in July 2020) will reach $6.2 billion.
“California’s iconic film industry continues to create opportunity and drive economic growth throughout our state,” said Governor Gavin Newsom. “Today’s report from the California Film Commission affirms the tax credit program continues to produce outstanding results and foster diversity and inclusion for a workforce that better reflects our vibrant communities.”
Data in the 45-page report covers the economic impact of projects in the third iteration of California’s tax credit program dubbed “Program 3.0,” which runs through June 2025. It provides an in-depth overview of the first two-and-a-half years of Program 3.0 by examining tax credit projects (feature films and TV series) in terms of overall production spending, employment and workforce training. The report also examines the impact of global competition for soundstage development and visual effects.
“The competition today is global, so it’s wonderful to see our state’s commitment to maintaining our status as the world’s film and TV production capital,” said California Film Commission executive director Colleen Bell. “The tax credit program is an incredibly effective tool, and today’s report confirms it’s working precisely as intended.”
Direct spending by projects in Program 3.0 includes:
- Qualified Spending – defined as wages paid to below-the-line workers and payments to in-state vendors, and
- Non-Qualified Spending – defined as all other spending (e.g., payments to above-the-line individuals such as writers, directors, actors and producers).
Only the qualified portion of each project’s budget is eligible for tax credits under California’s uniquely targeted incentive program.
Qualified spending for the second fiscal year of Program 3.0 held steady year-to-year at an estimated $1.4 billion. The first half of the current (third) fiscal year has reached an estimated $1 billion in qualified spending.
Aggregate qualified spending by tax credit projects through the first two-and-a-half years of Program 3.0 is projected to reach an estimated $4.2 billion–yielding $2 billion in unqualified (i.e., unincentivized) spending across the state. These figures are based on tax credit allocations of $265 million for fiscal year-one, $277 million for fiscal year-two and $184 million for the first half of fiscal year-three.)
In addition to data on production spending, other key findings and highlights in the report cover:
IN-STATE EMPLOYMENT
The 106 approved projects selected for year-two of Program 3.0 are on track to employ a combined 8,135 crew, 4,111 cast and 79,248 background actors/stand-ins (the latter measured in “man-days”) during 2,421 filming days in California. Projects selected for the first half of fiscal year-three are on track to employ 4,497 crew, 1,141 cast and 50,458 background actors/stand ins during 1,297 filming days. In aggregate, the first two-and-a-half years of Program 3.0 are on track to employ a total of 18,736 crew, 9,833 cast and 204,700 background actors/stand-ins with 5,900 filming days.
Productions in the tax credit program also generate non-incentivized post-production jobs and revenue for VFX artists, sound editors, sound mixers, musicians and other workers/vendors.
WORKFORCE TRAINING, DIVERSITY AND INCLUSION
Program 3.0 includes several new and ongoing initiatives to promote workforce training, diversity and inclusion. The Career Readiness requirement (continued from Program 2.0) mandates all tax credit projects participate in learning and training programs for students based in California. Working in collaboration with the California Department of Education and the California Community Colleges Chancellor’s office, tax credit projects have fulfilled the requirement by hiring students for paid internships, welcoming faculty members for externships, hosting workshops/panels and staging professional skills tours.
During the height of the pandemic, in-person experiences such as internships, externships, and professional skills tours were suspended. In total, 33 projects in Program 3.0 have completed the Career Readiness requirement, with $169,653 contributed in aggregate to either California Community Colleges or the California Department of Education.
New for Program 3.0 is the Career Pathways Program that targets individuals from underserved communities. It is funded directly by tax credit projects and works with partner training programs across the state.
Since 2020, training providers ManifestWorks, Hollywood CPR, and IATSE Local 695’s SVOP Y-16A Training Program have helped achieve Career Pathways Program goals. A total of 141 individuals have participated in the program: 30 with Hollywood CPR, 39 with ManifestWorks, and 17 with SVOP–all during year-two of Program 3.0.
RELOCATING TV SERIES
During its second fiscal year, Program 3.0 welcomed two relocating TV series from Vancouver and Georgia. The first half of the current (third) fiscal year brings two additional relocating series from New Orleans and Florida. To date, a total of 27 TV series have relocated to California under different iterations of the state’s tax credit program.
BIG-BUDGET FILMS
During its second fiscal year, Program 3.0 welcomed five films with budgets greater than $60 million that are on track to bring an estimated $738 million in direct in-state spending. Projects include “Atlas,” “Beverly Hills Cop 4,” and “Unfrosted.” The first half of the current fiscal year brings an additional four big-budget film projects including “Joker: Folie a Deux” and “The Thomas Crown Affair.” To date, Program 3.0 has welcomed 11 big-budget films – or half of the 22 feature films accepted into the program thus far.
Rom-Com Mainstay Hugh Grant Shifts To The Dark Side and He’s Never Been Happier
After some difficulties connecting to a Zoom, Hugh Grant eventually opts to just phone instead.
"Sorry about that," he apologizes. "Tech hell." Grant is no lover of technology. Smart phones, for example, he calls the "devil's tinderbox."
"I think they're killing us. I hate them," he says. "I go on long holidays from them, three or four days at at time. Marvelous."
Hell, and our proximity to it, is a not unrelated topic to Grant's new film, "Heretic." In it, two young Mormon missionaries (Chloe East, Sophie Thatcher) come knocking on a door they'll soon regret visiting. They're welcomed in by Mr. Reed (Grant), an initially charming man who tests their faith in theological debate, and then, in much worse things.
After decades in romantic comedies, Grant has spent the last few years playing narcissists, weirdos and murders, often to the greatest acclaim of his career. But in "Heretic," a horror thriller from A24, Grant's turn to the dark side reaches a new extreme. The actor who once charmingly stammered in "Four Weddings and a Funeral" and who danced to the Pointer Sisters in "Love Actually" is now doing heinous things to young people in a basement.
"It was a challenge," Grant says. "I think human beings need challenges. It makes your beer taste better in the evening if you've climbed a mountain. He was just so wonderfully (expletive)-up."
"Heretic," which opens in theaters Friday, is directed by Scott Beck and Bryan Woods, co-writers of "A Quiet Place." In Grant's hands, Mr. Reed is a divinely good baddie — a scholarly creep whose wry monologues pull from a wide range of references, including, fittingly, Radiohead's "Creep."
In an interview, Grant spoke about these and other facets of his character, his journey... Read More