Newsom aims to help Hollywood flip the script on industry decline

The set of Netflix's "That ’90s Show," at Hollywood's Sunset Bronson Studios, in May 2022.

(Myung J. Chun / Los Angeles Times)

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Hollywood gets the Newsom treatment

Hollywood loves a good comeback story. Now the beleaguered film and TV industry is looking to write its own with some help from Gov. Gavin Newsom and (potentially) the state Legislature.

The governor announced a new proposal this weekend to more than double the funding for California’s film and TV tax credit program. If approved by the Legislature, the program could expand to $750 million, up from its current total of $330 million. That big boost could take effect as early as July 2025, should the Legislature approve Newsom’s measure.

“[That] would make California the top state for capped film incentive programs, surpassing even New York,” my colleagues Samantha Masunaga and Christi Carras reported over the weekend.

Hollywood production has plummeted in recent years, fueled initially by the pandemic, then made worse by the unsustainable streaming wars and last year’s dual strikes by writers and actors.

All that, plus the constant lure of other states’ higher tax incentives, has stifled the industry’s rebound, drying up job opportunities and sparking an exodus of film and TV workers.

Tyler Perry’s TV and movie studio in Atlanta.

(KIrk D. McKoy / Los Angeles Times)

English-language scripted projects being filmed in the L.A. region fell by 19.7% in 2023 compared with 2022, according to a study by FilmLA, which handles film permits and tracks regional production. California’s share of the global production market fell from 22% to 18% in that same time period, their report states.

Industry experts had been calling on state leaders to increase its tax incentives so California can remain competitive with Georgia, New York, Canada and other popular production destinations that currently offer larger tax breaks.

“This is about jobs, this is about investment and this is about realizing that the world we invented is now competing against us,” Newsom said Sunday during a news conference, where he was joined by Los Angeles Mayor Karen Bass, legislative leaders and union officials.

The governor also took a political jab at Georgia, which has no cap on its tax incentive program. He expressed hope that film and TV producers who aren’t aligned with that state’s policies regarding “workers and women’s rights, LGBTQ rights, civil rights [and] voting rights” would return to California if the new incentives were enacted.

Bass thanked Newsom for his proposal, saying elected officials should “do everything we can to strengthen and protect one of the foundational pillars of our economy in Los Angeles.”

New York and Georgia “outshined us very quickly,” Bass said. “But what you’ve done now will help us catch up.”

Although the funding boost is substantial, certain restrictions in the state’s program would remain. The incentives exclude the salaries of actors and other above-the-line costs that represent a big chunk of a project’s budget.

“Georgia and other rivals do not have such restrictions,” Christi and Samantha noted in their coverage. “But such a move is considered politically untenable in California, where the film incentive program has faced opposition from critics who argue that subsidizing entertainment comes at the expense of other worthy causes, such as education and healthcare.”

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A firefighting bulldozer works against the advancing Felicia fire in Piru on Oct. 3.
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And finally … your photo of the day

Freddie Freeman tosses his bat and raises an arm in celebration as a sea of fans cheer in the stands behind him.

(Gina Ferazzi / Los Angeles Times)

Today’s great photo is from Times staff photographer Gina Ferazzi and it’s downright cinematic — just like Dodger Freddie Freeman’s instant classic moment in Game 1 of the World Series.

Fans hug and cheer as Freeman reacts after hitting a walk-off grand slam in the 10th inning to beat the New York Yankees 6-3 in Game 1 of the World Series on Friday at Dodger Stadium. Freeman became the first player in MLB history to hit a walk-off grand slam in a World Series game.

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