Majority Leader Calderon Praises Passage of California Film Tax Credit Budget Trailer Bill

Monday, June 18, 2018

Sacramento, California – Majority Leader Ian Calderon (D – Whittier) released the following statement about the Legislature’s passage of Senate Bill 871, which extends and enhances the California Film and Television Tax Credit Program:

“I applaud the Legislature and Governor for incorporating the California Film and Television Tax Credit Program into the 2018-2019 Budget. This program has a proven track record of incentivizing the creation of good, middle-class “below-the-line” jobs. I am proud to have worked on this issue this year to ensure that the program is not only extended, but improved upon. This year’s version promotes diversity in the industry, provides more opportunities for underserved communities, and aims to strengthen sexual harassment policies.”

Highlights of the 2018 California Film and Television Tax Credit Program:

SB 871 extends the California Film and Television Tax Credit Program until July 1, 2025.  The bill retains important provisions of the previous tax credit, including:

  • Awards tax credits according to a jobs ratio rating system, whereby applications are ranked based upon the number of jobs created and other economic factors;
  • Ensures that similar productions compete against each other by establishing separate “buckets” for feature films, television series and independent productions;
  • Retains a special category – and additional credit – for TV series that are relocating from filming outside of California;
  • Offers an additional 5% tax credit increase for production outside the Los Angeles 30-mile zone.

SB 871 will also improve upon the existing program:

  • Creates a one of a kind, first in the country pilot program – the Career Pathways Training Program - for training Californians from under-served communities for careers - not temporary jobs - in the skilled craft occupations in motion picture and television productions (below the line positions).
  • Addresses diversity in “above-the-line” (Actors, Writers, Directors, Producers) jobs by providing for a voluntary survey of employees and the disclosure of programs and initiatives to increase the representations of minorities and women;
  • Incentivizes the use of California musicians for film and television scoring
  • Requires that employers/applicants provide their harassment prevention policies, including who receives such complaints, procedures for reporting and investigating, distribution of harassment prevention policies to employees and statement there will be no retaliation;
  • Allocates more tax credits to projects produced by independent (non-publicly traded studio) production companies;
  • Creates an additional 5% incentive for the hiring of locally based crew members when productions film outside the Los Angeles 30-mile zone;

As of today, the California Film Commission reported that 150 feature films and TV series were produced or scheduled to be produced in California with total expenditures of $5.9 Billion. More than 47,000 California cast and crew members have been or will be employed on approved, qualified projects.

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Contact: Lerna Shirinian, (562) 692-5858