Californiaโs economy might see a boost from the stateโs expanded film and TV tax credits, but local lawmakers say itโs not enough.
Despite Gov. Gavin Newsom authorizing an expanded $750-million film and TV tax credit program last summer, the impending merger between Paramount and Warner Bros. and the projected budget cuts that are expected to follow have reignited fears about the loss of Hollywood jobs and U.S.-based productions.
โState programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,โ U.S. Sen. Adam Schiff (D-Calif.) said during a news conference at Burbank City Hall Friday morning.
โWe must act, and the urgency could not be greater,โ said Schiff, adding that he is working on a bipartisan federal film incentive proposal that would be globally competitive.
He said film tax credit programs arenโt about Hollywoodโs stars, but the crew jobs productions create, including roles for set designers, carpenters and lighting crews.
โThese are the people who make that magic happen. We want to keep those jobs here, and many of us are deeply concerned about what this potential merger will do to those jobs,โ Schiff said.
Earlier this week, the California Film Commission revealed that 16 shows had recently received tax credits for filming in the state. The projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. Schiff said the state tax credit has generated more than $29.1 billion in motion picture production wages and supported more than 220,000 jobs.
Los Angeles film activity was still down 13.2% from July through September when compared with the same period in 2024, according FilmL.A. Inc., which handles film permits for the region.
Los Angeles lost 42,000 jobs in the motion picture sector between 2022 and 2024, according to data from the Bureau of Labor Statistics, partly due to the migration of work internationally.
The downturn has put increased financial pressure on independent studios that have struggled to fill their sound stages.
โFederal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage,โ said Matthew Loeb, the presidentโฏof the International Alliance of Theatrical Stage Employees. โFor us, production that supplements state incentives is essential to return and maintain film and television jobs in America.โ
HBO Maxโs medical drama โThe Pittโ is filmed on the Warner Bros. lot in Burbank and is among the shows benefiting from Californiaโs tax incentive.
Noah Wyle, the star and executive producer of the show, said during the news conference, that the tax incentive was essential to โThe Pittโ filming in L.A., which he said is โprohibitivelyโ expensive.
โAs an Angeleno with generational roots to this city and as a seasoned member of its creative community, advocacy for Los Angeles-based production is something that is very close to my heart,โ Wyle said.
โโThe Pittโ has blessedly become proof of that speculative concept. Iโm happy to report weโll commence shooting season three this summer, and that a rising tide has indeed lifted all boats in season one under the 3.0 tax program,โ he added.
The budget for one episode was approximately $6.6 million, so the show received a rebate of about $760,000 per episode. By the end of season one, the production was able to save over $11 million.
Rep. Laura Friedman (D-Glendale), who is working with Schiff on production tax incentives, said that because California is already seeing benefits from the current program, thereโs no reason a film incentive wouldnโt work nationally. Friedman added that tax incentives are a common practice among many industries in the U.S.
โHollywood is not asking for special treatment. Whether it is computer chips, the energy sector or pharmaceuticals, this is something that is standard in the United States,โ said Friedman at Fridayโs event. โIn terms of our nation, Hollywood and its ability to tell the story of America, it is something worth saving.โ
