California tax credit extension put on hold

The move has reportedly been made to allow legislators to refine a recently added provision to submit a 'diversity work plan'

The five-year extension of California’s $330m-a-year production tax credit programme has been put on hold, though apparently only until next year and with the support of its political backers. 

The bill, known as SB 485, that was set to extend the credit from its current sunset date of mid-2025 to 2030, was expected to be signed by state governor Gavin Newsom before the end of California’s current legislative session next week. But state senator Anthony Portantino, the legislation’s lead author, has now requested the bill be put on the ‘inactive file,’ meaning that it will not be considered again until the start of 2023 legislative session. 

The move has reportedly been made to allow legislators to refine a recently added provision requiring recipients of the 20%-25% credit to submit a ‘diversity work plan’ reflecting the make up of California’s population. Recipients that met their diversity goals would get an additional 4% credit. 

In a statement, Portantino said that given Newsom’s commitment to the extension “it does not seem pressing to push SB 485 through right now, while there is still time to thoughtfully act before 2025.” 

A statement from Newsom said: “The film tax credit has been hugely successful. Just this week we had four new big budget films and 14 independent films receive tax credits for filming in California that will generate hundreds of millions in spending and thousands of jobs across the state.” 

The statement added that Newsom is “committed to working with the legislature and stakeholders next year on extending and strengthening this programme, which helps drive the state’s economy and supports California’s iconic film industry.” 

Recent films that have been attracted to California in part by the state’s incentive programme include Bullet Train and King Richard.

This article originally appeared on KFTV's sister site ScreenDaily.

California tax credit extension put on hold
King Richard. Credit: John Hazelton
California tax credit extension put on hold
King Richard. Credit: John Hazelton

The five-year extension of California’s $330m-a-year production tax credit programme has been put on hold, though apparently only until next year and with the support of its political backers. 

The bill, known as SB 485, that was set to extend the credit from its current sunset date of mid-2025 to 2030, was expected to be signed by state governor Gavin Newsom before the end of California’s current legislative session next week. But state senator Anthony Portantino, the legislation’s lead author, has now requested the bill be put on the ‘inactive file,’ meaning that it will not be considered again until the start of 2023 legislative session. 

The move has reportedly been made to allow legislators to refine a recently added provision requiring recipients of the 20%-25% credit to submit a ‘diversity work plan’ reflecting the make up of California’s population. Recipients that met their diversity goals would get an additional 4% credit. 

In a statement, Portantino said that given Newsom’s commitment to the extension “it does not seem pressing to push SB 485 through right now, while there is still time to thoughtfully act before 2025.” 

A statement from Newsom said: “The film tax credit has been hugely successful. Just this week we had four new big budget films and 14 independent films receive tax credits for filming in California that will generate hundreds of millions in spending and thousands of jobs across the state.” 

The statement added that Newsom is “committed to working with the legislature and stakeholders next year on extending and strengthening this programme, which helps drive the state’s economy and supports California’s iconic film industry.” 

Recent films that have been attracted to California in part by the state’s incentive programme include Bullet Train and King Richard.

This article originally appeared on KFTV's sister site ScreenDaily.

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