The effectiveness of California’s Film & TV Tax Credit Program 2.0 in retaining and attracting in-state production is affirmed in an annual progress report released today (11/2) by the California Film Commission.
The report provides comprehensive data through year-three of the expanded tax credit program launched in 2015. It reveals that Program 2.0 has led to sustained growth in:
- Employment–in terms of hours worked in-state by below-the-line crew members. Program year-three continued the long-term growth trend with a 15.6 percent increase in hours worked in 2017 compared to 2014 (the year before Program 2.0 began). This growth builds on 2016’s 12 percent increase over 2014. These figures are based on data for below-the-line workers including Teamsters, IATSE members, basic crafts and others covered under the Motion Picture Industry Pension & Health Plans. In addition, Los Angeles-area sound stages are operating at near capacity (as reported by FilmL.A.), which is leading to substantial growth in construction for new stages and production support facilities.
- Big-Budget Films (over $75 million)–which are a target for the uncapped incentives offered by other states and countries. During year-three of Program 2.0, California attracted five additional big-budget films (“Call of the Wild,” “Captain Marvel,” “Ford v. Ferrari,” “Island Plaza” and “Once Upon a Time in Hollywood”). To date, the expanded tax credit has attracted a total of 10 big-budget films.
- Relocating TV Series–which have their own dedicated allocation of tax credits. During year-three of Program 2.0, California attracted two additional relocating TV series (NBC’s “Timeless” from Vancouver, and Amazon Studios’ “Sneaky Pete” from New York). To date, the expanded tax credit program has gained a total of 15 relocating TV series from across the U.S. and Canada.
- Production Activity Statewide–for which Program 2.0 provides an added incentive uplift. During the program’s first three fiscal years, tax credit projects spent a total of more than $78 million in 19 counties outside the Los Angeles 30-Mile Zone. This figure will continue to rise as more tax credit projects for year-three (and prior years) report their out-of-zone spending.
“Today’s report shows that Program 2.0 is working over the long-term to create high-quality production jobs and increase production spending in California,” said Amy Lemisch, executive director of the California Film Commission. “While our tax credit is far more targeted than most, it does precisely what it was designed to do by keeping us competitive and reminding the industry that California has everything needed to provide the best value.”
In total, $815 million in tax credits have been allocated by the state during the first three fiscal years of Program 2.0. This investment is on track to generate nearly $6 billion in direct in-state spending (up from $3.7 billion in spending through fiscal year-two). The latest $6 billion figure includes $2.25 billion in qualified wages and $1.89 in qualified vendor expenditures, along with $1.85 billion in other expenditures that do not qualify for tax credits. Collectively, productions that have been allocated tax credits under Program 2.0 are on track to employ more than 18,000 cast and 29,000 crew members.
Year-four of Program 2.0 began July 1, 2018 (the start of the state’s new fiscal year). The most recent tax credit application period was held October 15-19 for feature film projects. Those film projects approved conditionally for tax credits will be announced on November 19. The next application period for TV projects will be held November 5 – 9, 2018.
Changes Afoot For Cannes Lions 2025, Including Increasing Festival Access For Underserved Communities
The Cannes Lions International Festival of Creativity is putting plans in motion for its 72nd edition, set to take place from June 16-20, 2025 in Cannes, France. The Festival has announced that it will double funding to provide โฌ2m (some $2,150,000) worth of complimentary passes to underrepresented talent and underserved communities through its Equity, Representation and Accessibility (ERA) Pass, returning for a second year.
Frank Starling, chief DEI officer, Lions, said the increased investment was โcrucial to continue to drive progress for both Cannes Lions and the industry.โ Starling added, โThe ERA pass plays an important role in fostering a global representation of talent within the creative communications industry at Cannes Lions, and to date our funded opportunities have reached creatives in 46 countries globally. With the Festival being the destination for everyone in the business of creativity, we recognize the importance of creating equitable access to it, and this is why weโre prioritizing increased representation from the Global South to support a greater range of voices and perspectives from the region at the Festival.โ Applications for the ERA pass are open now and close on December 5, 2025. More details can be found here.
With submissions into the Cannes Lions Awards opening on January 16, 2025, innovations to the Awards have also been announced today. Glass: The Lion for Change celebrates 10 years since its introduction. The Glass Lion was launched to champion work that used creativity to drive a shift towards more positive, progressive and gender-aware communication, and Marian Brannelly, global... Read More