News Summary

California’s ‘Stay in L.A.’ event drew hundreds advocating for increased tax incentives to support the film and television industry, which has seen a drastic decline in production jobs. The movement is focused on bolstering Governor Gavin Newsom’s budget proposal to raise incentives from $330 million to $750 million. Speakers emphasized the importance of crew roles and the urgent need for reforms to maintain California’s competitive edge in the entertainment sector amid significant reductions in production.

California witnessed a significant gathering recently with hundreds coming together in Sun Valley for the “Stay in L.A.” event, aimed at advocating for expanded tax incentives to rejuvenate the struggling film and television production industry. Attendees included labor leaders, industry workers, and policymakers who shared their personal experiences and challenges stemming from a marked decline in production jobs in the state.

The primary aim of the “Stay in L.A.” movement is to rally support for California Governor Gavin Newsom’s budget proposal to increase annual film and television production incentives from $330 million to $750 million. This proposed legislation seeks to raise the film and television credit to 35% and broaden eligibility to cover animation, large-scale competition shows, and shorter television series.

As industry speakers highlighted at the event, there’s a growing disparity in the existing tax incentives that fundamentally impact working-class and middle-class creatives as well as crew members—who are essential to the continuity and success of Hollywood productions. The significance of crew roles such as grips, costumers, and drivers, which often go unnoticed in broader industry discussions, was emphasized.

The backdrop for the event includes the ongoing challenges faced by the entertainment industry. Reports indicate a staggering 22% decline in on-location production in the first quarter of 2024, with a troubling 58% decrease in television production over the past three years. Such data reinforces the urgency behind the “Stay in L.A.” campaign, especially in the wake of California’s existing film tax credits that range only from 20% to 25%.

Importance of Tax Incentives

Lawmakers in Los Angeles are advocating for measures like streamlining film permitting processes and enhancing tax credits to retain much-needed production jobs. As states like Georgia and countries such as Canada and the U.K. offer greater incentives, California risks losing its competitive edge in the film industry if these proposed tax changes aren’t implemented soon. Critics have voiced skepticism regarding the efficacy of tax credits, questioning their true value and impact on California’s economy.

Nevertheless, advocates argue that increasing the film tax credit would not only benefit the film and television industry but also yield significant economic returns by positively affecting tourism and supporting related small businesses. As evidence of grassroots activism, over 100,000 letters backing the proposed tax credits have been sent to state lawmakers.

Legislative Progress and Challenges

While the proposed legislation has already navigated initial challenges in the California legislature, it faces further obstacles, particularly from politicians representing regions outside traditional entertainment-centric areas. Concerns linger about California’s broader economic outlook, leading to questions about potential funding priorities and sacrifices that would be necessary for the film industry.

Importantly, the “Stay in L.A.” movement, born from recovery efforts following devastating fires in Pacific Palisades and Altadena, aims to invigorate local production and help cement Hollywood’s status. Leaders within the movement are also working to secure commitments from major studios to keep production localized in Los Angeles, although public responses to these requests remain absent thus far.

Call to Action

As part of the gathering, attendees were urged to take active steps by contacting their elected representatives to advocate for the proposed tax credit measures. Industry leaders have warned against complacency; they have articulated fears of a long-term decline in Hollywood comparable to the economic collapse that once beset Detroit. With production jobs dwindling, the industry’s future hangs in the balance, as advocates continue to push for reforms that could redefine the landscape of film and television in California.