Sacramento, CA – Today, California’s five containerized ports inclusive of the Port of Hueneme, the Port of Long Beach, the Port of Los Angeles, the Port of Oakland, and the Port of San Diego, signed a Memorandum of Understanding (MOU) in Sacramento launching the California Port Data Partnership alongside state and federal partners.

The MOU outlines an agreement between the five ports to jointly advance computerized and cloud-based data interoperability with a common goal of supporting improved freight system resilience, goods movement efficiency, emissions reduction, and economic competitiveness.

“California’s ports are an essential link in the global supply chain. Thanks to the leadership of Governor Newsom and our state Legislature, California is establishing a first-of-its-kind, collaborative data system between all our state’s containerized cargo ports,” said California Lieutenant Governor Eleni Kounalakis. “Today’s historic agreement will create a greener, more transparent, and more efficient supply chain -unlocking innovation in how cargo moves in California.”

Over the past months California’s five ports and the State have held bi-weekly roundtables to develop the framework for the MOU. The MOU and partnership will serve as the basis of cooperation for the $27M in grant funds from GO-Biz for port data system development. The funds were included in the Budget Act of 2022 which included a historic multi-billion-dollar state investment in California’s goods movement and supply chain sectors.

“The MOU is a first-of-its-kind agreement on data system development among containerized ports and outlines eleven areas of cooperation, ranging from developing data definitions to ensuring equitable access to data for users,” said GO-Biz Director and Senior Advisor to Governor Gavin Newsom, Dee Dee Myers. “This MOU and the funds that follow will build the basis for greater cooperation and standardization when it comes to data in our supply chain. I want to thank all of our partners across the supply chain as well as our ports for their leadership in this effort.”

“Under Governor Newsom’s leadership, California is making expansive upgrades to our nation-leading supply chain – from infrastructure to workforce development to technology – to create a more dynamic and resilient goods movement system that will power our economy for decades to come,” said California Transportation Secretary Toks Omishakin. “This groundbreaking agreement will help develop a world-class data partnership that, coupled with our strategic infrastructure investments, will improve efficiency throughout the supply chain and keep California at the forefront of innovation.”

The California Legislature additionally emphasized the importance of such investments in the budget in the wake of supply chain challenges in years past.

“The California Legislature has emphasized the importance of these investments in the budget in the wake of supply chain challenges,” said Assemblymember Mike A. Gipson (D-Carson). “As Chair of the Select Committee on Ports and Goods Movement, I am happy to see all of California’s containerized ports come together and sign the Memorandum of Understanding that will give $27 Million for data system development. I will ensure a continued, collective partnership between the Legislature, state, and ports. Ports are a vital part of California’s economy, and I will work to ensure that California is doing everything to support our ports.”

Each of California’s five containerized ports also weighed in on the importance of the MOU and the partnership’s opportunity to improve the collective supply chain and further innovation within the freight and goods movement sectors.

“This historic investment by Governor Newsom leverages the overall competitiveness of California’s container Ports through innovation and access to cutting edge technology,” said Kristin Decas, CEO and Port Director for the Port of Hueneme. “This strategic technological alignment and partnership will specifically enable the Port of Hueneme to best support the ecosystem of California ports as a resiliency hub and of utmost importance, take the state to the next level by connecting the supply chain with a cloud-based cargo data system that promises to minimize disruptions and prosper fluidity in goods movement.”

“Sharing vital shipping data will reduce delays and aid the entire goods movement industry from the docks to doorsteps,” said Port of Long Beach Executive Director Mario Cordero. “By working together, California’s ports can enable end-to-end visibility and connectivity across the supply chain.”

“Data was essential to navigating supply chain disruption,” said Port of Los Angeles Executive Director Gene Seroka. “Analytics from that data allows us to see around corners, which is not just a competitive advantage, it’s now a public necessity. I commend our state leaders, particularly GO-Biz and Director Myers, for having the foresight to invest in data infrastructure to create a more predictable and efficient supply chain.”

“The Port of Oakland is pleased to collaborate with our legislative and maritime leaders to improve freight movement using technological innovation,” said Port of Oakland Executive Director Danny Wan. “It’s fitting that this digital supply chain solution originates in California, the technology capital of the world.”

“The Port of San Diego is a vital part of goods movement in our region and for the entire state of California,” said Port of San Diego Board of Port Commissioners Chairman Rafael Castellanos. “We are an indispensable economic engine pumping $9.2 billion into our county’s economy and we serve as an integral part of our national security. We are thankful to Governor Gavin Newsom for the opportunity to collaborate with other California ports to further improve our operations, increase throughput and enhance customer service through the Ports Data Partnership. This is particularly important as our Port, through our Maritime Clean Air Strategy is creating a greener, cleaner, and more modern seaport.”

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements

Latest Round of Tax Credits Includes a Diverse List of TV Series, from Amazon’s Global Franchise “Citadel” to BET’s “True to the Game”

Seven Projects Will Spend $527 Million During Their First Season in California, Including $397 Million in Wages to Below-the-Line Workers and Payments to In-State Vendors

Hollywood, Calif. – April 17, 2023 – The California Film Commission today announced that seven TV projects — two relocating series and five new series — have been selected for the state’s latest round of film and television tax credits. These projects will spend an estimated $527 million in California during their first season and employ 1,585 crew, 629 cast, and 19,994 background actors.

The Amazon Studios thriller “Citadel” will move production from the UK for its second season to become California’s highest-spending relocating TV series to date, with an estimated $119 million in qualified expenditures. With the two additional relocating projects announced today — “Citadel” and HBO’s “Wondermill” from Oregon — California’s tax credit program has welcomed a total of 33 relocating TV series from other states and nations since the expanded tax credit program was launched in 2015 (see “Relocating TV Series” list below).

Among the new TV series selected for the latest round of tax credits is the BET drama “True to the Game” (based on the film trilogy with the same title), which will generate an estimated $11 million in qualified expenditures during its first season.

Other new TV series in the current round include “Forever” (Netflix), “Paradise City” (Disney), Untitled Amazon Studios Series and Untitled Paramount Global Series.

“We’re thrilled that our tax credit program is welcoming such a diverse range of TV projects in terms of storytelling, budget and employment,” said California Film Commission Executive Director Colleen Bell. “‘Citadel’ will become our biggest relocating TV series so far in terms of qualified spending, while a project like ‘True to the Game’ affirms that our tax credit program also addresses the needs of smaller-scale yet still very impactful TV projects.”

“Thanks to California’s tax credit program, I will be able to work here in my home state,” said “True to the Game” director Vivica A. Fox. “Executive Producer Manny Halley looks forward to producing the franchise here and creating hundreds of high-quality jobs in California.”

Together, the relocating and new TV series announced today are on track to spend a combined $527 million in California during their upcoming season of production. This figure includes $397 million in qualified spending, defined as wages paid to below-the-line crew members and payments made to in-state vendors. Only the qualified portion of each project’s budget is eligible for tax credits under California’s uniquely targeted incentive program. Therefore, the seven projects will generate an estimated $130 million in unincentivized spending across the state.

In total, the projects will employ an estimated 1,585 crew, 629 cast, and 19,994 background actors/stand-ins (the latter measured in “man-days”) for their next season of production. They will spend an estimated 646 filming days in California, including 23 shoot days planned outside the Los Angeles 30-Mile Studio Zone. They will also generate significant post-production jobs and revenue for California VFX artists, sound editors, sound mixers, musicians, and other workers/vendors.

In addition to the relocating and new TV series announced today, the tax credit program currently has 26 recurring (legacy) series accepted during previous allocation rounds and in various stages of production (see “Ongoing TV Series – Various Stages of Production” list below).

The California Film Commission’s latest tax credit application period was held March 6-20, 2023. A total of $80.4 million in tax credit allocation has been reserved for the seven projects selected. The list of conditionally approved projects is subject to change, as applicants may withdraw from the tax credit program and their reservation of credits reassigned to one or more projects on the waitlist.

The next application period for TV projects will be held June 5-12, 2023. The next application period for feature films will be held July 24-31, 2023.

About California’s Film and Television Tax Credit Program
In 2014, the California legislature passed a bill that more than tripled the size of the state’s film and television production incentive, from $100 million to $330 million annually. Aimed at retaining and attracting production jobs and economic activity across the state, the California Film and TV Tax Credit Program 2.0 also extended eligibility to include a range of project types (big-budget feature films, TV pilots and 1-hr. TV series for any distribution outlet). The current third generation of the California Film and TV Tax Credit Program (dubbed “Program 3.0”) was launched on July 1, 2020.

More information about Program 3.0, including application procedures, eligibility, DEI initiatives and guidelines, is available at film.ca.gov.

California Film and TV Tax Credit Program
Relocating Television Series
April 17, 2023

Note: Approved projects during this application window are highlighted in yellow.

California Film and TV Tax Credit Program
Ongoing TV Series – Various Stages of Production
April 17, 2023

NOTES

1. Approved projects during this application window are highlighted in yellow.
2. The above list will likely be revised as applicants may withdraw from the program.
3. Credit allocation will be issued to recurring TV series if / when they provide pick up orders for additional episodes or new seasons.
4. “Recurring Series” is defined as a TV Series or Relocating TV Series – in its second or subsequent season in California – that has received a previous allocation of tax credits.
5. “Relocating TV Series” is a TV Series that filmed its most recent principal photography outside California.
6. *TV Projects that were initially accepted as a Relocating TV Series.

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Erik Deutsch
ExcelPR Group (for the California Film Commission)
(323) 851-2455 direct
Email Erik, HERE

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements

California – Today, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) has submitted an application to the United States Department of Energy (DOE), as part of the Biden Administration’s Hydrogen Earth Shot Challenge. ARCHES is the official applicant and organizer for California’s proposal to bring a statewide Department of Energy H2 hub to the Golden State.

ARCHES, announced as the organizer for California’s DOE application last year, is a statewide public-private partnership designed to accelerate H2’s contribution to decarbonizing the state’s economy and will build on California’s long-standing H2 and renewable energy leadership. The Governor’s Office of Business and Economic Development (GO-Biz) has joined with the University of California, state agencies, elected leaders, organized labor, and non-profit organizations to build the framework for California’s renewable, clean H2 hub.

“California’s cutting-edge policies, dedicated stakeholders and unmatched partnerships make it the best place in the country to build out a green hydrogen ecosystem,” said Dee Dee Myers, Senior Advisor to the Governor and Director of GO-Biz. “An H2 hub here would serve as a catalyst to jumpstart projects across the state and help ignite our efforts to infuse renewable energy into our economy in a way that benefits all of our communities, especially those that have been most impacted by climate change.”

“We believe California’s leadership, and early efforts on transitioning to 100% renewable, zero-carbon electricity, and developing H2 infrastructure puts us in an excellent position to accelerate the shift to zero carbon for all sectors,” said Angelina Galiteva, Acting CEO of ARCHES. “California’s extensive renewables portfolio will be essential to help power hard to electrify sectors, and develop carbon free fuels and long-duration energy storage solutions. We look forward to the opportunity to bring these cutting edge projects to life in coming years, along with the chance to collaborate with other U.S. hubs in building the hydrogen economy of the future. We are grateful to the Biden Administration and Congressional leaders who have created the Earth Shot Challenge and given us this incredible opportunity.”

Last year, Governor Newsom signed into law an ambitious package of climate legislation that included a mandate to achieve carbon neutrality no later than 2045 and deliver 90% clean electricity by 2035. Governor Newsom’s Executive Order on Zero-Emission Vehicles and California’s Scoping Plan have sent strong market signals around the critical role of hydrogen in decarbonizing our transportation sector. To hit these ambitious goals, California must dramatically reduce its reliance on carbon-based fuels, which these hub projects will help accomplish.

“The new and existing clean H2 projects that are part of the ARCHES portfolio will bring tens of thousands of jobs to California for years to come,” said Andrew Meredith, President of State Building & Construction Trades Council of California. “Many of these projects will be along California’s transportation corridors, helping to provide skilled workers jobs in regions of the state where projects of this scale have been lacking.”

“The University of California and the state have a long history of collaboration and leadership on environmental policy and practices. We are pleased to continue supporting California’s ambitious sustainability goals through our partnership in ARCHES, including a transition to clean, renewable energy,” said University of California President Michael V. Drake, M.D. “This collaboration embodies the University’s key priorities of leading on climate change, promoting health across California, and strengthening inclusive, respectful, and safe communities. We congratulate ARCHES and its partners on reaching this milestone and look forward to future collaborations that will foster the sustainable, equitable future that all Californians deserve.”

Through the application, ARCHES is seeking funding to establish a federal hydrogen hub from the U.S. Department of Energy through the Infrastructure Investment and Jobs Act.

ARCHES would like to thank their diverse network of partners across the state, including leaders in energy research, communities, trades, utilities, for-profit companies and nongovernmental organizations, for their collaboration throughout this application process.

As next steps, DOE will be reviewing all applications and will be following up with applicants in the coming months.

​

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

About ARCHES
ARCHES is a public-private partnership to create a sustainable statewide clean hydrogen (H2) hub in California and beyond, utilizing local renewable resources to produce hydrogen with the objective to fully decarbonize the regional economy, while prioritizing environmental justice, equity, economic leadership and workforce development. ARCHES has united key stakeholders to build the framework for a California reviewable, clean H2 hub. For more information, please visit archesh2.org

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements

“In California, we are extremely proud of our close relations with Japan,” said Lieutenant Governor Eleni Kounalakis. “Japan is the number one source of foreign direct investment in the State of California but even more important are the historic, cultural, and people-to-people links that bind us together. Our trip could not have been more productive in strengthening the deep economic ties between our economies and taking meaningful action on climate change.”

Lieutenant Governor Kounalakis and Director Myers were joined by Assemblymember Al Muratsuchi (D-Torrance), California State Transportation Agency (CalSTA) Secretary Toks Omishakin, California Department of Food and Agriculture (CDFA) Secretary Karen Ross, California Air Resources Board (CARB) Chair Liane Randolph, California Energy Commission (CEC) Chair David Hochschild, and CEC Commissioner Patty Monahan as well as a delegation of travel and tourism executives led by Caroline Beteta, President and CEO of Visit California.

The trade delegation coincided with the one-year anniversary of signing a Memorandum of Cooperation (MOC) between California and Japan, signed by Governor Newsom and Ambassador Tomita, strengthening economic cooperation, trade, and the shared commitment to tackling climate change.

“California’s cutting-edge policies — and the innovative businesses and new technologies that are the hallmark of our state — are key to our climate cooperation with Japan,” said GO-Biz Director Dee Dee Myers. “This trade mission strengthened our essential private sector and government ties, furthered our shared energy and security goals, and reinforced California’s role as a global leader in business, research, and commercial innovation to advance climate mitigation strategies.”

KEY TAKEAWAYS FROM CALIFORNIA’S TRADE MISSION TO JAPAN 

Historic Partnerships on Clean Ports and Advancing Green Shipping Corridors

• A new Letter of Intent (LOI) signed by the governments of California and Japan to work together to clean up a critical link in the global supply chain by collaborating on strategies to cut planet-warming pollution at seaports and establish green shipping corridors.
• The signing of Memorandum of Understandings (MOUs) between the Port of Los Angeles, the Port of Tokyo, and the Port of Yokohama formalizing collaboration on sustainability and environmental issues.

Boosting Economic Partnerships in the Clean Energy Sector

• The announcement of a $1.4B contract between California company Controlled Thermal Resources (CTR) and Japanese company Fuji Electric for the delivery of geothermal power facilities in Imperial County, California. CTR expects to produce 150,000 metric tons of battery-grade lithium to support global demand for electric vehicles and energy storage systems, which could save almost 1 billion gallons of gasoline and reduce vehicle tailpipe emissions by 11.5 million metric tons annually all while decarbonizing lithium production by another 2 million metric tons.
• Agreement between California-headquartered Principle Power and Tokyo Gas to supply technology and engineering to the Fukushima Floating Offshore Wind Project, which will feature two modern 15 MW wind turbines on Principle Power’s WindFloat® foundations.
• A new collaboration between California’s Universal Hydrogen, Sojitz Corporation, and Mitsubishi HC Capital Inc. to enable the use of hydrogen-powered aircraft by Japanese airlines.
• Hosted a California Pavilion at World Smart Energy Week, Japan’s largest renewable energy trade show, where six California small businesses exhibited their products and services, and California officials delivered a keynote session to an audience of more than 500 on the state’s strategies for decarbonization and climate resilience.
• Hosted the California Trade and Investment Forum, which highlighted business opportunities in California for Japanese investors and included participation from Japan’s New Energy and Industrial Technology Development Organization, the Japan Bank for International Cooperation, and the Japan External Trade Organization and was attended by more than 175 business executives.
• Hosted the California-Japan Climate Summit, attended by more than 250 business executives, which included panel discussions on the transition to carbon neutrality, promotion of renewable energy and clean hydrogen, decarbonization of critical infrastructure, and opportunities for climate solutions on agricultural lands.

New Partnerships and Initiatives to Promote Tourism 

• The signing of an MOU between Visit California and the Japan Association of Travel Agents, Japan’s largest tourism industry association, to work together to recover tourism visitation and spending to pre-COVID-19 levels.
• The signing of an MOU with H.I.S. Co. Ltd., Japan’s second-largest tour operator, to develop tourism promotions and products to appeal to HIS clientele, including training, familiarization tours, and consumer education.
• Visit California’s launch of new consumer initiatives to inspire California travel from Japan, including a new ad campaign and airline partnerships.

Strengthening Bilateral Relationships

• The signing of an MOU creating a California Trade and Investment Desk in Tokyo, which will serve as a hub for promoting business engagement between Californian and Japanese companies.
• Meeting with U.S. Ambassador to Japan, the Honorable Rahm Emanuel, to learn more about the critically important relationship between our two countries, the priorities of the Biden-Harris administration in Japan, and how California as a subnational leader can support advancing our diplomatic and commercial ties.
• Meetings with Governor Yuriko Koike of Tokyo, the first woman to be elected Governor of Tokyo, and Vice Governor Nobuhiko Yamaguchi of Osaka Prefecture, one of California’s sister states to discuss how our sub-national governments can support the efforts of our national leadership to further advance the historic relations between Japan and the United States.
• Meetings with the Japanese Minister of Foreign Affairs; Minister for the Economy, Trade, and Industry; Minister of Digital Transformation/ Minister of Consumer Affairs and Food Safety; as well as officials from the Ministry of Agriculture, Forestry, and Fisheries and the Ministry of Land, Infrastructure, Trade, and Tourism to discuss how we can combine our strengths to benefit both of our economies and for the world.

WHAT THEY’RE SAYING

“The California trade delegation to Japan was highly successful in strengthening ties between the world’s third and fourth largest economies,” said Assemblymember Al Muratsuchi. As a state legislator, I represent the South Bay area of Los Angeles County, home to the largest number of Japanese businesses in the United States. Japanese business investment in California creates jobs for Californians and promotes innovation in clean energy and other important industries.  I thank Lieutenant Governor Kounalakis and the Governor’s Office of Business and Economic Development for leading this successful trade mission.”

“The successful trade mission further strengthened our state’s and country’s tight-knit relationship with Japan and will lead to more meaningful collaboration as we work together to enhance trade and rapidly cut planet-warming pollution from our transportation sectors, including seaports on both sides of the Pacific,” said CalSTA Secretary Omishakin. “The trip may be over, but the information gained, and the partnerships forged will pay dividends for the people of California for years to come.”

“During our time in Japan, we celebrated the strong ties that we have within the market, visiting some of our key agricultural importers and highlighting California products to the trade,” said CDFA Secretary Karen Ross. “Our goals were to expand trade and climate collaboration to enhance opportunities for California’s farmers and ranchers in our fourth largest agricultural export market. It was a pleasure to participate in the trip and expand our strong friendship with Japan.”

“The pioneering climate policy that we create at the California Air Resources Board is, in many ways, a call to zero-emissions technology investors and manufacturers that we are open for business,” said CARB Chair Randolph. “The California-Japan Trade Mission allowed us to share our climate story, exchange lessons learned with government leaders in Japan, and foster the clean technology partnership and investment we need both in California and around the world to avoid the worst impacts of climate change.”

“For the CEC, the ‘mission’ in the trade mission to Japan was climate solutions. And this trip was a tremendous success in strengthening the collaboration between California and Japan on clean energy,” said CEC Chair David Hochschild. “It included the signing of a billion-dollar deal on California lithium, as well as productive meetings on offshore wind, transportation electrification, energy storage, hydrogen, and electric heat pumps. I would like to thank Lt. Governor Kounalakis and GO-Biz Director DeeDee Myers for their leadership in making it happen.”

“California is open for business, and we’re eager to welcome Japanese travelers back to rediscover all our state has to offer,” said Caroline Beteta, President and CEO of Visit California. “We have a longstanding relationship with Japanese travelers that goes back decades, and there are so many new experiences to explore. The new initiatives we launched in Japan this week will reignite partnerships and showcase the best of California to travel agents, meeting planners and visitors.”

“The California Chamber of Commerce was delighted to work alongside the Lt. Governor’s Office and GO-Biz on this important and successful mission to Japan,” said Susanne Stirling, Vice President of International Affairs at the California Chamber of Commerce. “The business leaders in our delegation greatly appreciated the unique opportunities to visit with Japanese businesses, tour factories, and learn more about Japan’s centers of innovation. The meetings we took part in brought us a renewed sense of optimism for successful partnerships with Japanese companies and supported CalChamber’s long-held goal of expanding international trade and investment to bolster California’s economy and prosperity.”

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Heather Purcell
Deputy Director of Communications
Email Heather, HERE

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements

Projects Will Employ an Estimated 3,173 Crew, 801 Cast and 29,602 Background Actors/Stand-Ins Over a Combined 768 Filming Days

Hollywood, Calif. – March 6, 2023 – Despite increasingly strong global competition, California’s Film & Television Tax Credit Program continues to welcome big-budget and independent films, including 24 new projects announced today. These films (21 independent, three non-independent) are on track to bring $662 million in total production spending to California, including an estimated $423 million in “qualified” expenditures. They will employ an estimated 3,173 crew, 801 cast and 29,602 background actors and stand-ins.

Three of the projects announced today are big-budget films — an untitled Disney live-action project, “Thomas Crown Affair” and “Michael,” which is on track to generate more in-state spending than any other film in the tax credit program’s 14-year history. Combined, the three projects alone will generate an estimated $265 million in qualified spending and $433 million in overall (qualified plus unqualified) spending in California.

In addition, the 21 independent films announced today will generate a combined $172 million in qualified spending and $230 million in overall spending. The six indies with budgets over $10 million (“Live,” “Puritan II,” “Shell,” “The Invite,” “The Knockout Queen” and “Unstoppable”) are on track to generate a combined $96 million in qualified spending and $128 million in overall spending.

The 24 film projects will also generate significant postproduction jobs and revenue for California visual effects artists, sound editors, sound mixers, musicians and other industry workers/vendors.

“Our tax credit program continues to welcome a diverse range of projects, from big-budget films to small independent projects, and everything in between,” said California Film Commission Executive Director Colleen Bell. “The program is an important tool for maintaining our competitiveness and curbing runaway production. We are working harder than ever to keep entertainment production here in California, where it belongs.”

Production for the 24 projects is set to occur over a combined 768 filming days in California. Half of the projects plan to film outside the Los Angeles 30-Mile Studio Zone, for a combined 228 out-of-zone filming days (see “Allocation # 4 Out of Zone Filming” chart below).

The California Film Commission received a total of 58 applications during the January 30 – February 6 feature film tax credit application period. It has reserved $81.7 million in tax credit allocation for the 24 conditionally approved projects (see “Fiscal Year 3 – Allocation # 4 Conditionally Approved Projects” chart below).

The next application period for feature films will be held July 24 – 31. The next application period for TV projects will be held March 6 – 20.

About California’s Film and Television Tax Credit Program
In 2014, the California legislature passed a bill that more than tripled the size of the state’s film and television production incentive, from $100 million to $330 million annually. Aimed at retaining and attracting production jobs and economic activity across the state, the California Film and TV Tax Credit Program 2.0 also extended eligibility to include a range of project types (big-budget feature films, TV pilots and 1-hr. TV series for any distribution outlet). The current third generation of the California Film and TV Tax Credit Program (dubbed “Program 3.0”) was launched on July 1, 2020.

More information about Program 3.0, including application procedures, eligibility, and guidelines, is available at film.ca.gov.

Contact: Erik Deutsch, ExcelPR Group (for the California Film Commission) (323) 851-2455 direct / erikd@excelpr.com

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements

New Provisions Affirm California’s Long-Term Commitment to Fighting ‘Runaway Production’ and Defending Its Status as the World’s Media Production Capital

Hollywood, Calif. – January 10, 2023 – Governor Gavin Newsom’s proposed 2023-24 state budget extends funding for California’s Film and TV Tax Credit Program an additional five years (through fiscal 2030-31) and proposes to make credits refundable for the first time since the state launched its incentive in 2009.

The new budget provisions are part of Governor Newsom’s ongoing effort to retain and grow production activity across the Golden State. They call for replacing the current third iteration of the state’s tax credit program (Program 3.0), which sunsets in 2025, with a new five-year program dubbed Program 4.0. While total funding is proposed to remain at $330 million per year, tax credits awarded under Program 4.0 will be eligible to be partially refundable to make the program applicable to a broader range of applicants.

“The proposed budget affirms Governor Newsom’s leadership in ensuring California’s Film and TV Tax Credit Program evolves and continues to deliver on our goal of retaining and growing in-state production,” said California Film Commission Executive Director Colleen Bell. “The five-year extension and provision to make tax credits refundable will give industry decision makers more options and the certainty they need to make long-term investments here in the Golden State. This will translate into more production-related jobs, spending and opportunity.”

Refundable tax credits will enable applicants to claim a tax refund at a discounted value over multiple years. Credits used to offset in-state tax liability will continue to retain their full value. Under California’s current program, credits for feature films and TV projects are non-refundable and non-transferable, while credits for independent film projects are currently transferable but non-refundable. With the proposed budget, all applicants (and therefore all projects) admitted into California’s tax credit program could be eligible for refundable tax credits.

Building On a Record of Success
California has earned its long-held status as the world’s film and TV production capital due to its superior crews, talent, infrastructure, weather, locations and a host of other factors that promote business and creative success. In recent years, aggressive incentives — mostly in the form of tax credits and rebates — have attempted to lure production away from the Golden State. The impact of such ‘runaway production’ prompted policymakers in California to respond with the state’s own robust tax credit program.

According to the California Film Commission’s latest progress report, the current iteration of the state’s tax credit program (Program 3.0) launched in July 2020 and is on track to generate more than $6.2 billion in total production spending statewide during just the first half of its five-year duration. This figure includes $4.2 billion in “qualified” spending, defined as wages to below-the-line crew members and payments to in-state vendors. Only the qualified portion of each project’s budget is eligible for tax credits under California’s uniquely targeted program. The $6.2 billion figure does not include the creation/retention of non-incentivized jobs for performers, producers, directors, writers, composers and music supervisors.

A recent study by the Los Angeles Economic Development Corporation (LAEDC) reported that each dollar allocated by California’s Film and TV Tax Credit Program generated $24.40 in economic output, plus $1.07 returned to taxpayers in state and local tax revenues.

In addition to bringing production jobs and spending to regions across the state, California’s Film and TV Tax Credit Program also promotes workforce training, diversity and inclusion. The Career Readiness requirement mandates that all tax credit projects participate in learning and training programs such as paid internships for students, externships for faculty members, workshops, panels and professional skills tours. The more recently launched Career Pathways Program specifically targets individuals from underserved communities. It is funded directly by tax credit projects and works with partner training programs across the state to reduce the economic, geographic and social barriers to career success. California’s tax credit program also requires participating projects to have a written policy for addressing unlawful harassment and submit voluntarily reported above and below-the-line cast and crew employment diversity data. Each production must also provide the state with a copy of its initiatives and programs to increase the representation of women and minorities.

A full summary of Governor Newsom’s proposed 2023-24 state budget is available here and a revised proposal with revenue estimates will be released this May. The state’s 2023-24 fiscal year begins July 1^st.

About California’s Film and Television Tax Credit Program 
California’s film and television production incentive was launched in 2009. In 2014, the California legislature passed a bill that created the second iteration of the state’s tax credit program (Program 2.0) and more than tripled the amount of funding from $100 million to $330 million annually. Program 2.0 also extended eligibility to include a range of project types (big-budget feature films, TV pilots and 1-hr. TV series for any distribution outlet) that were excluded from the first-generation tax credit program. In addition, Program 2.0 introduced a “jobs ratio” ranking system to select projects based on “qualified” spending (e.g., wages paid to below-the-line workers and payments made to in-state vendors). To spur production statewide, a supplementary five percent tax credit was made available to non-independent projects that shoot outside the Los Angeles 30-Mile Studio Zone or that have qualified expenditures for visual effects or music scoring/track recording. The five-year Program 2.0 went into effect on July 1, 2015 and wrapped its fifth and final fiscal year (2019/20) on June 30, 2020.

The third (current) generation of the California Film and TV Tax Credit Program (dubbed “Program 3.0”) was launched on July 1, 2020. New provisions included a pilot skills training program to help individuals from underserved communities gain access to career opportunities. Program 3.0 also added provisions requiring projects to have a written policy for addressing unlawful harassment and enhanced reporting of above and below-the-line cast and crew employment diversity data.

More information about California’s Film and Television Tax Credit Program 3.0, including application procedures, eligibility, and guidelines, is available at film.ca.gov/tax-credit/.

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

Erik Deutsch
ExcelPR Group (for the California Film Commission)
(323) 851-2455 direct
Email Erik, HERE

Explore more articles by category:  GO-Biz News  |  CalOSBA News  |  Press Releases  |  Opinion Editorials  |  Statements