In 2022, the state is offering more film tax credits than ever before.
“Veep.” “You.” “Miracle Workers.” “American Horror Story.” “Lucifer.” “Good Girls.”
These TV shows have one thing in common: They originally filmed outside of California — in New York, Louisiana, Vancouver, even the Czech Republic — but were coaxed back here at least in part because of tax credits from the state.
Twenty-nine TV shows have relocated to California after being promised state funds, part of a yearslong effort to fight an exodus of productions from Hollywood.
And now, flush with cash amid a budget surplus, California is fighting even harder.
In July, Gov. Gavin Newsom signed a bill that adds $330 million to the available tax credits for film and TV productions in 2022 and 2023, on top of the $330 million that was already budgeted each year through 2025.
The next round of deadlines for applying for film tax credits is approaching at the end of the month.
“Everybody’s in the game of luring production, and so this is a highly competitive space,” said Colleen Bell, the executive director of the California Film Commission, which oversees the program. “We continue to maintain our legacy as entertainment production capital of the world. But we can’t just sit back on our laurels.”
But the increased investment raises the question: Can these credits actually stop runaway production?
Let’s start with some history.
More than 20 years ago, Canada and states like New Mexico, Louisiana and Georgia began creating tax perks to attract Hollywood productions. Film employment declined in California.
Fearing the loss of its flagship industry, California created a film tax credit in 2009 for productions that stay in state. The program was greatly expanded in 2014.
In its current form, filmmakers can recoup as much as 25 percent of their spending — up to the first $100 million — on crew salaries and other costs (star salaries are not eligible).
Since the program began, California has spent $2.5 billion to help fund 591 productions, including toward the salaries of 161,000 people who worked on set. That stimulus generated $19.4 billion in in-state funding, officials say.
But California’s foothold as the nation’s entertainment capital continues to slip.
Between 2020 and 2021, the number of scripted TV shows filmed in California dropped by 39 percent, more than any other popular filming location, according to a report from FilmLA. During the same time period, which was disrupted by the coronavirus pandemic, the number of productions in Georgia remained flat while increasing in Utah and Texas.
Many states offer bigger financial incentives than California, making it hard for the state to compete. And critics of the tax incentives point out that they don’t permanently bring production back, but can start a bidding war between states.
Plus, perhaps surprisingly, money isn’t everything. In an early analysis of California’s film tax credit, the state’s Legislative Analyst’s Office found that one-third of the projects that received the subsidies probably would have been made in California regardless.
“While the credit probably caused some film and television projects to be made here, many other similar projects also were made here without receiving any financial incentive,” a 2019 report reads.
In the most recent fiscal year, 18 percent of productions that were denied the film tax credit went ahead with production in California anyway, according to state data.
Still, a local tax incentive is widely viewed as a way to level the playing field. The latest boost to California’s program includes funding to create more soundstages and to incentivize additional TV shows to relocate.
As Newsom told Variety after the signing of the expanded credits, keeping Hollywood production in California is also a point of pride: “This is the world we created now, and in many ways it’s competing against us.”
For more:
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From Westerns to “Stranger Things,” Hollywood is big business in New Mexico.
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The Los Angeles Times profiled Colleen Bell, formerly the U.S. ambassador to Hungary.
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Netflix eyes a New Jersey Army base for a major production hub.
The latest on Omicron and the pandemic
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San Jose approved a Covid-19 booster mandate for city workers and anyone attending an indoor event at a city-owned property, NBC Bay Area reports.
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Omicron deepens uncertainty surrounding the Beijing Olympics.
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Health workers, tell us how you’re coping with the latest surge.
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Check case rates in your area.
The rest of the news
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Single-payer health care: A bill that would create a single-payer health care system in California passed its first hurdle, The Associated Press reports.
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Tesla regulations: Following videos that show Tesla’s new self-driving model being used dangerously, California is considering regulating the technology, Reuters reports.
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Firearm registration: Owners of a style of assault rifle that is now illegal to buy in California will have to register their firearms by April, The Associated Press reports.
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California files lawsuit: The state sued a health insurance company that it claims illegally denied members benefits, The Associated Press reports.
SOUTHERN CALIFORNIA
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School funding: In affluent areas of Los Angeles, parent fund-raising organizations often cover some major costs. But are they buying an education inaccessible to most students? LAist reports.
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Coachella: See the 2022 festival lineup, which was announced Wednesday.
CENTRAL CALIFORNIA
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Valadao campaign: Representative David Valadao, one of the few Republicans who voted to impeach former President Donald J. Trump, plans to run for election in an increasingly Democratic district, The Fresno Bee reports.
NORTHERN CALIFORNIA
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Elizabeth Holmes sentencing: The Theranos founder, who was convicted of fraud this month, will be sentenced on Sept. 26.
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An invasion of crows: The city of Sunnyvale is turning to an inexpensive technology to deal with flocks of crows taking over the streets, ABC 7 reports.
Where we’re traveling
Today’s travel tip comes from Jim Rutledge, a reader who lives in Oakland:
“Trinidad, Calif., is like heaven on earth. Quaint little fishing village with stunning Pacific Coast views. Hiking in the Redwoods one day and beachcombing the next.
Perfect base camp to explore all that the North Coast has to offer. Excellent restaurants right in town. Great place to visit in the winter when there is less coastal fog and no snow.”
Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We’ll be sharing more in upcoming editions of the newsletter.
Tell us
What’s the best part of winter in California? Email us at CAtoday@nytimes.com with your traditions, recommendations and opinions.
And before you go, some good news
You could spend an afternoon reading the strange and fun stories of how dozens of Bay Area cities got their names, as compiled by SFGate.
Here’s a weird one: John Cameron was a Scottish sailor who arrived in the Monterey area on a British trading ship in 1814.
At some point, Cameron changed his last name to Gilroy, his mother’s maiden name.
One of few English speakers in the region, Gilroy lived among the Mexican settlers and Native Americans and married a ranchero’s daughter.
Toward the end of his life in the 1860s, a settlement began to evolve around his land — a town eventually named Gilroy.
Thanks for reading. I’ll be back tomorrow. — Soumya
P.S. Here’s today’s Mini Crossword, and a clue: What mosquitoes and vampires do (4 letters).
Jonah Candelario, Steven Moity and Mariel Wamsley contributed to California Today. You can reach the team at CAtoday@nytimes.com.
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