Governor Gavin Newsom is working hard to prove that the expansion of the California Film & Television Tax Credit program is having its desired effect and helping bring more productions back to the state. We’ve still seen some numbers from FilmLA that suggest things haven’t bounced back quite yet. Already the jobs issue in Hollywood has become a contentious part of the race for governor in California, with several candidates pledging to eliminate the $750 million cap put in place by Newsom, which already was more than double what the state was previously capped at.
But it’s not just the quantity of projects now qualifying for tax credits that has changed, it’s also the types. In the last announcement from the California Film Commission back in March, animated series and reality competition shows were among the new types of TV shows eligible for incentives, and now animated features are getting the same benefit.
The CFC announced that 38 film projects were awarded tax credits in this round, including 20th Century Studios’ recently announced “The Simpsons Movie 2” and a “Phineas and Ferb” movie from Disney Entertainment Television. There’s also an unspecified new DreamWorks movie that will shoot in California that round out the three animated features getting credits for the first time. A press release says that these three animated features alone should employ 484 cast and crew and deliver $144 million in qualified expenditures.
“We are incredibly grateful to be the first animated feature selected by the Film Commission to receive a tax credit in California,” said Randy Lake, Chief Operating Officer for DreamWorks Animation. “This credit will have a massive impact on our budgets, allowing DreamWorks to hire more local talent to complement our industry-leading animators and technologists.”
Other projects to qualify include a Gloria Sanchez project called “Self-Help” that at one point had Kirsten Dunst attached to star, an Artists Equity movie called “The Renewal,” and an indie called “Black Is Blue” starring Laverne Cox.
“We’re honored that ‘Self-Help’ has been selected for California’s Film & TV Tax Credit Program,” said Gloria Sanchez Productions co-founder, Will Ferrell. “We’re seeing real momentum again in California, and it’s incredibly meaningful to be part of bringing production home and working with the crews who make this industry so special.”
“I’m incredibly grateful to the California Film Commission for supporting ‘Black Is Blue,’” said lead actor Laverne Cox. “California has always been a place where bold, authentic stories come to life, and being able to make this film here means we get to collaborate with some of the most talented crews and artists in the world while investing back into the creative community that makes this industry possible.”
The film commission says that since the expansion of the Film & Television Tax Credit, the state has seen applications into the program jump by 400 percent, and it has so far approved 147 productions, up 53 percent compared to the same time last year, which it says represents $5.5 billion in total economic activity.
“California remains the entertainment capital of the world — and we’re making sure it stays that way. Our expanded film and television tax credit is keeping more productions here in the Golden State, creating good-paying jobs and supporting communities statewide. I’m proud to announce the next round of projects that will keep California rolling and strengthen our leadership in the global creative economy,” Governor Newsom said in a statement.
“This round marks a truly exciting milestone for our program. For the first time, we’re welcoming animated feature films from powerhouses DreamWorks Animation, Walt Disney, 20th Century Studios, and Disney Entertainment Television alongside a strong slate of big budget features and independent productions, that bring fresh voices and original storytelling to the screen,” CFC director Colleen Bell added. “With more than 45 percent of filming days taking place outside the traditional studio zone, we’re seeing the real-world economic impact of this program reach communities across the entire state. That’s what this program is about: creating good-paying jobs and supporting local businesses, while bolstering California’s creative economy in regions across the state.”
The news comes as Netflix is reportedly nearing a deal to acquire the historic Radford Studios lot in Studio City, which would give it a big footprint in Southern California as it currently just leases space in Hollywood. Such commitments from major studios to California are positive steps in the right direction for the state.