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.”
Utah Leaders and Locals Rally To Keep Sundance Film Festival In The State
With the 2025 Sundance Film Festival underway, Utah leaders, locals and longtime attendees are making a final push — one that could include paying millions of dollars — to keep the world-renowned film festival as its directors consider uprooting.
Thousands of festivalgoers affixed bright yellow stickers to their winter coats that read "Keep Sundance in Utah" in a last-ditch effort to convince festival leadership and state officials to keep it in Park City, its home of 41 years.
Gov. Spencer Cox said previously that Utah would not throw as much money at the festival as other states hoping to lure it away. Now his office is urging the Legislature to carve out $3 million for Sundance in the state budget, weeks before the independent film festival is expected to pick a home for the next decade.
It could retain a small presence in picturesque Park City and center itself in nearby Salt Lake City, or move to another finalist — Cincinnati, Ohio, or Boulder, Colorado — beginning in 2027.
"Sundance is Utah, and Utah is Sundance. You can't really separate those two," Cox said. "This is your home, and we desperately hope it will be your home forever."
Last year's festival generated about $132 million for the state of Utah, according to Sundance's 2024 economic impact report.
Festival Director Eugene Hernandez told reporters last week that they had not made a final decision. An announcement is expected this year by early spring.
Colorado is trying to further sweeten its offer. The state is considering legislation giving up to $34 million in tax incentives to film festivals like Sundance through 2036 — on top of the $1.5 million in funds already approved to lure the Utah festival to its neighboring... Read More