This column has been a strong proponent of commercials and branded content gaining eligibility for tax credits, rebates and other filming incentive programs. Thankfully a growing number of states has seen the prudence of such inclusion yet ironically California–long regarded as the film/TV production mecca–is not among them when it comes to its Film & Television Tax Credit Program which was part of last year’s state budget agreement.
But it’s not just the :30 and its ad brethren that have been given short shrift. California’s Tax Credit Program, now in its second year, had an allocation of $100 million this current fiscal year for qualifying features and TV programs. That $100 million dance card was filled in a single day by 30 projects, leaving in limbo another 30 or so eligible productions that filed for the incentives. These pending projects are currently entries on the dreaded wait list. It’s likely that they won’t wait all that long; these projects will just go to other states or countries offering competitive subsidies.
And what of those projects down the road that qualify but won’t bother to file in that California’s allocation for this fiscal year is already used up? Clearly it’s not just the :30 and the 30 wait-listed projects that will go without in California–it’s an untold number of other productions that will wind up elsewhere.
Some would argue that California is being fiscally responsible by not increasing its tax credit allocation to accommodate filmmaking. After all, the state is in a budget crisis.
Yet the fact is that the budget quagmire and shortfall should instead spur on better funded, more inclusive filming incentives in order to dramatically increase sorely needed revenue for the state’s economy. Consider the impact thus far of the California tax credits. In its first year, the program–administered by the California Film Commission (CFC)–allocated $200 million in tax credits to 77 projects. This year, another 30 projects are set to receive an additional $100 million in tax credit allocations. Together, they are estimated to bring $2 billion in direct spending to California communities, which includes $736 million in wages paid to “below-the-line” crew members (electricians, grips, drivers, costumers, etc), according to data compiled by the CFC.
Governor Arnold Schwarzenegger (R-Calif.) said that the incentive initiative has created and retained tens of thousands of jobs while generating spending in the Golden State.
The CFC reported that the 77 first-year projects approved for tax credits will hire 18,200 crew members, 4,000 cast members, and over 100,000 background or “extra” players. These approved projects include 51 feature films, both studio and independent, seven television series and 14 made-for-television-movies.
Meanwhile the Milken Institute, a nonprofit economic think tank, issued a report which noted that while it’s a tough time for the state to afford targeted or expanded tax breaks, “California can’t afford not to” in the case of the filming business. The report went on to read, “The state can’t squander any opportunities to retain and add significant numbers of high-paying jobs.”
Trump Asks Supreme Court To Delay TikTok Ban
President-elect Donald Trump asked the Supreme Court on Friday to pause the potential TikTok ban from going into effect until his administration can pursue a "political resolution" to the issue.
The request came as TikTok and the Biden administration filed opposing briefs to the court, in which the company argued the court should strike down a law that could ban the platform by Jan. 19 while the government emphasized its position that the statute is needed to eliminate a national security risk.
"President Trump takes no position on the underlying merits of this dispute. Instead, he respectfully requests that the Court consider staying the Act's deadline for divestment of January 19, 2025, while it considers the merits of this case," said Trump's amicus brief, which supported neither party in the case and was written by D. John Sauer, Trump's choice for solicitor general.
The argument submitted to the court is the latest example of Trump inserting himself in national issues before he takes office. The Republican president-elect has already begun negotiating with other countries over his plans to impose tariffs, and he intervened earlier this month in a plan to fund the federal government, calling for a bipartisan plan to be rejected and sending Republicans back to the negotiating table.
He has been holding meetings with foreign leaders and business officials at his Mar-a-Lago club in Florida while he assembles his administration, including a meeting last week with TikTok CEO Shou Chew.
Trump has reversed his position on the popular app, having tried to ban it during his first term in office over national security concerns. He joined the TikTok during his 2024 presidential campaign and his team used it to connect with younger... Read More