Assemblymember Adrin Nazarian introduced legislation extending the highly successful film tax credit to 2025. The current film tax credit is set to expire on June 30, 2020.
“The film & TV tax credit has generated an additional $1.4 billion in wages for our below-the-line crews and a sustained 12% increase in hours worked,” stated Assemblymember Adrin Nazarian, citing a report by the California Film Commission. “We cannot let these jobs slip away; extending the highly successful tax credit is my number one priority this year.”
The current film & TV tax credit program increased the available amount of tax credits from $100 million to $330 million annually—beginning in the 2015–16 fiscal year—and modified the program in various ways. The $1.55 billion program runs for five years, with a sunset date of June 30, 2020. Each fiscal year—July 1 to June 30—the tax credits are allocated from four dedicated funding “buckets” that target different categories of production.
Projects eligible for a 25% tax credit on qualified spending include:
- Relocating television series
- Independent films
The following types of productions are eligible for a 20% non‐transferable credit:
- Television projects (new TV series, miniseries, movies of the week, pilots, and recurring TV series already in the program)
- Non‐independent (e.g., studio) films.
Allocating tax credits via these categories enables applicants to compete directly against comparable projects.
In addition to the 20% tax credit, projects may receive additional 5% tax credits for non‐independent projects that shoot outside the Los Angeles 30‐mile zone, have qualified expenditures for visual effects (minimum thresholds apply), and/or perform music scoring/track recording in‐state.
“Hollywood will remain the worldwide capitol of entertainment and I will fight each day for our below-the-line workers,” stated Assemblymember Adrin Nazarian.
Articles on the Film Tax Credit:
The Hollywood Reporter: Film Tax Credits Generate $1.07B for California Economy
Adrin Nazarian represents the 46th Assembly District, serving the San Fernando Valley communities of Hollywood Hills, Lake Balboa, North Hills, North Hollywood, Panorama City, Sherman Oaks, Studio City, Toluca Lake, Valley Glen, Universal City, Van Nuys, and Valley Village.