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Governor Newson Announces Proposal to Expand California Film Commission’s Tax Credit Program for Film and TV Production
Kim Anthony • October 27, 2024
HOLLYWOOD, Calif. (Oct. 27, 2024) – Governor Gavin Newsom today proposed expanding California’s Film & Television Tax Credit Program from the current $330 million annual allocation to $750 million annually. The massive increase to the program, which is administered by the California Film Commission (CFC), would allow California to outpace other states offering tax credits, luring more entertainment industry projects back to the Golden State.
“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Governor Newsom said. “Expanding this program will help keep production here at home, generate thousands of good paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”
“California needs to keep pace with competing states and nations in providing aggressive tax incentives,” said Colleen Bell, Director of the California Film Commission. “The Governor’s bold plan will accelerate these efforts and assure California remains the production center of the entertainment industry.”
The economic value of increased production pays dividends on many fronts:
- A study of the tax credit program found that, for every tax credit dollar approved, it generated and created at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue resulting from production in the state.
- Since its inception in 2009, California’s Film & Television Tax Credit Program has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state.
According to Bell, the program has been oversubscribed year after year, with more productions applying than can be accommodated under the current budget cap. The results have been tangible. In recent years, projects unable to secure California’s tax credits moved to other locations. That migration caused significant economic losses, with an estimated 71% of rejected projects subsequently filming out-of-state. Many other projects chose not to apply due to the limited funding, suggesting that total runaway production losses are likely much higher.
For example, between 2020 and 2024, data shows California lost an estimated $1.6 billion in production spending due to limited tax credit funding, directly impacting state jobs and local economies.
Despite these challenges, the CFC has enjoyed some major recent wins through the tax credit program, including:
- September 2024: Indie films and “Suits LA.” $51.6 million to support 19 projects, including 15 independent Expected to generate $284.4 million in spending, with $112.1 million allocated to wages, and over 3,800 jobs.
- July 2024: Five new TV projects, including HBO’s “Latitude” and 20th Television’s “All’s Fair.” $58 million in tax credits went to five television projects, which was expected to generate $386 million across 438 filming Estimated to support 15,869 background performers, 1,196 crew members, and 685 cast members.
- March 2024: Amazon’s Fallout relocated to California. $152 million in tax credits went to 12 projects, including Fallout’s second season relocating from New York. Projected to bring in over $1.1 billion in spending across the state and support 4,500 cast and crew members, plus 50,000 background performer days.
- December 2023: The Mandalorian & Grogu to film in With a total of $400 million allocated to 15 projects, including Lucasfilm’s The Mandalorian & Grogu alone that was set to inject $166 million into California’s economy. Nearly 20,000 jobs created, including 2,252 crew and 598 cast. Other productions included “The Accountant 2” by Amazon Studios, “Untitled 20th Film,” Disney’s untitled live-action feature.
In 2023, Governor Newsom signed a five-year extension of the program, including new workforce diversity provisions, more funding for the Pilot Career Pathways Training Program, and the nation’s first Safety on Production Pilot Program. Furthermore, tax credits will become refundable for the first time since the program’s inception in 2009, beginning with the 2025-26 fiscal year, with Program 4.0 set to commence on July 1, 2025.
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Last week, U.S. Commerce Secretary Gina Raimondo and Deputy Secretary Don Graves participated in the 41st Annual National Minority Enterprise Development (MED) Week, where they honored the achievements of U.S. minority -owned business enterprises. Together they reaffirmed the Biden-Harris Administration’s commitment to advancing economic equity and equality and ensuring that minority-owned businesses have the access to capital, technical assistance, and more to help them scale. Held this year in conjunction with the 2024 National Minority Supplier Development Council’s (NMSDC) Annual Conference in Atlanta, the Minority Business Development Agency’s (MBDA) MED Week is a celebration of the talent and ingenuity of the innovators and entrepreneurs who run our Nation’s minority-owned businesses. Minority-owned businesses add incredible value to our economy, generating nearly $2 trillion in revenue annually and generating tremendous consumer loyalty within their communities. Over the last three years, a record number of Americans have started new businesses, with Black and Latino business ownership growing at their fastest rates in 30 years. To date, 16 million jobs have been created under the Biden-Harris Administration. During a fireside chat with NMSDC CEO and President Ying McGuire, Secretary Raimondo stressed the critical role minority businesses play in driving economic growth and the need to ensure this growth remains inclusive. “I firmly believe that our diversity is our greatest strength,” she said. “We will fail to meet our full potential as a Nation unless we harness the talents and strengths of all parts of the country, including people of color, women, and others who are too often left behind.” At an earlier session, Deputy Secretary Don Graves participated in a panel dialogue with cabinet-level and Federal executives on federal investments that support and empower minority business enterprises across the Nation. During the panel, he discussed his role as the Chair of the Interagency Community Investment Committee (ICIC). The ICIC has played a vital role in ensuring that communities know about the federal investments that are available to them and have direct access to the resources, tools, and technical assistance they need to participate and thrive in the economy. Vice President Harris launched the ICIC three years ago, to ensure that billions of dollars of investment flow to and through America’s communities. “The Biden-Harris Administration remains committed to ensuring that minority-owned businesses have access to the resources they need to thrive and grow,” said Deputy Secretary Graves. “If we’re going to out-compete and out-innovate, we need to use the full force of the economy. Everyone will need to participate.” Through funding provided by the Inflation Reduction Act and the CHIPS and Science Act, the Department of Commerce is working to ensure that minority-owned businesses benefit from the billions of dollars that are being invested in the Nation’s infrastructure, manufacturing, and clean energy industries. Key programs include CHIPS for America , Tech Hubs , and the Good Jobs Challenge . These programs are creating thousands of new and good-paying jobs for American workers and providing long-awaited resources and training to communities across America. Last year, MBDA launched the Capital Readiness Program , the largest-ever investment supporting underserved entrepreneurs. MBDA is investing $125 million to launch 43 business incubators and accelerators designed to help minority and underserved entrepreneurs launch and grow their businesses. As part of MED Week, the MED Week awards were presented to businesses, organizations, and individuals for exceptional contributions to minority business growth. The awards are the highest national recognition a minority-owned firm can receive from the U.S. Department of Commerce. For more information, see President Biden’s Proclamation for Minority Enterprise Development Week, 2024.
As AfroTech 2024 approaches, anticipation is high for discussions celebrating Black excellence in technology. This year, Capital One, known for its leadership in tech innovation and commitment to diversity, will take center stage with a workshop on technology and product management. Leading this session are Alexandra “Alex” Wood, Vice President of Product, and Jared Jordan, Managing Vice President—two visionary leaders advancing Capital One’s tech landscape and exemplifying the company’s dedication to empowering Black talent and pushing technological boundaries. Jared Jordan brings a wealth of experience from industry giants like Google, YouTube, and Netflix, where he led groundbreaking engineering initiatives. At Capital One, Jared focuses on customer identity, data management, and messaging systems, helping protect against fraudulent activity and ensuring customers receive timely communications through their preferred channels. “Capital One’s mission to change banking for good resonates deeply with me,” he shares. “Financial freedom and access are essential to building a more equitable world, and Capital One’s commitment to both technology and diversity made it an easy choice for me.” A Commitment to Diversity and Innovation What distinguishes Capital One is its dedication to integrating diversity at the core of its tech initiatives, a value both Alex and Jared passionately uphold. “In many organizations, HR is seen as a back-office function, but at Capital One, we recognize that to change banking for good, we need to invest in the best people and create the infrastructure that allows them to thrive,” Alex explains. Capital One’s Blacks in Tech (BIT) Business Resource Group is committed to supporting, educating, and inspiring Black technologists at every stage of their careers. BIT aims to amplify its members’ voices, strengthen Capital One’s inclusive culture, and attract top talent from diverse backgrounds. Meet the Leaders: Alex Wood and Jared Jordan Jared echoes the significance of diversity in fueling innovation, emphasizing that building diverse products requires diverse teams. “At Capital One, we’re putting our resources where our values are, ensuring long-term success for our company and our communities,” he states. Jared believes that Capital One sets a standard for inclusivity in tech, particularly through its responsible application of data analytics and artificial intelligence (AI) to improve access and outcomes for all. What to Expect at AfroTech 2024 AfroTech 2024 attendees can look forward to an insightful workshop led by Alex and Jared, where they will delve into Capital One’s technology strategies and product management frameworks. “Our goal is to show that no matter what you look like, where you come from, or what your background is, you can make an impact in tech,” Jared shares. He and Alex will provide insights into aligning product and technology to drive innovation and deliver value. The workshop is designed not only as a learning experience but as an opportunity to inspire and empower. “Building great technology and products is a team sport,” Alex adds. “We want to help attendees see that everyone brings unique strengths to the table, and when those strengths come together, magic happens.” Looking Ahead: The Future of Tech at Capital One Both leaders are optimistic about Capital One’s future. Alex is enthusiastic about creating consumer-grade experiences for Capital One’s associates, envisioning internal processes that are as seamless and engaging as top digital platforms. “Imagine a world where we know what you’re great at and can match you with the perfect role and team,” she envisions. For Jared, the future involves pushing the limits of financial technology while keeping inclusivity at the forefront. “I see Capital One leading in AI, machine learning, and data analytics to enhance financial access for everyone,” he says. His advice to aspiring technologists is simple yet profound: “Stay curious and never stop learning.” Join Capital One at AfroTech 2024 Capital One is excited to participate in AfroTech 2024, connecting with the talented minds shaping the future of technology. Attendees won’t want to miss Alex and Jared’s session on Thursday, Nov. 14, and are encouraged to stop by the Capital One booth to connect with technologists and enjoy some great swag. Both Alex Wood and Jared Jordan bring diverse experiences and perspectives to their roles at Capital One. For Alex, the journey to Capital One wasn’t linear but a discovery of passion. “Like every good daughter of an immigrant, I wanted to be a doctor or scientist, but I found myself drawn to a broader range of interests, ultimately wanting to make lives better by removing friction and adding delight,” she reflects. Alex’s path, which included experience at startups and multinational organizations, led her to Capital One, where she now leads the HR product and data organization team, designing technology systems that enhance the experience of Capital One associates globally, from recruitment and payroll to talent management and learning. Photo Credit: Courtesy of Capital One
In the bustling heart of California’s Inland Empire, the Caltrans District 8 Small Business office is paving the way for small businesses, disadvantaged business enterprises (DBEs), and disabled veteran business enterprises (DVBEs) to thrive. With a commitment to equity and economic development, this program offers invaluable resources for entrepreneurs and veteran-owned companies eager to participate in state and federal contracting. For Caltrans, small business is more than just a priority—it's the backbone of its procurement mission. Leveling the Playing Field: DBE and DVBE Programs Caltrans District 8 has set ambitious goals to include DBEs in federally funded projects, aiming for a 22.2% DBE participation rate. This certification process ensures that DBEs with social and economic disadvantages have a fair shot in a competitive landscape. DBE firms must meet strict eligibility standards based on ownership, control, personal net worth, and business size, providing them with opportunities to contribute meaningfully to state projects. In addition to DBE support, Caltrans promotes inclusivity for small businesses and DVBEs through state-funded projects. The agency has committed to achieving a 25% small business (SB) and a 5% DVBE participation rate in these projects, reflecting its dedication to empowering entrepreneurs and veteran-owned companies. By doing so, Caltrans not only bolsters local economies but also enriches the fabric of California’s workforce with diverse talents and perspectives. Education and Outreach: Building Skills, Expanding Networks Recognizing the importance of knowledge and networking, the Caltrans District 8 Small Business office hosts an array of educational events throughout San Bernardino and Riverside Counties. These gatherings—such as the Surety (Bonding) Workshop, “How To Do Business With Caltrans” sessions, DBE and SB/DVBE certification workshops, and pre-bid meetings—equip businesses with the tools needed to succeed in state contracting. Through these events, Caltrans aims to create a well-informed, prepared small business community ready to navigate the intricacies of public sector procurement. Tools for Success: Practical Resources for Small Businesses For those looking to take the plunge into state contracting, Caltrans District 8 offers a suite of practical tools. Resources like Contractor’s Corner provide insights into project advertisements, bidding processes, and awards, while the Department of General Services’ eProcurement portal simplifies doing business with the state. The dedicated support for DBEs, DVBEs, and small businesses is a testament to Caltrans’ commitment to fostering a diverse supplier base. To further drive small business success, Caltrans adheres to Government Code Section 14110.3, which sets a 25% participation goal for certified small businesses in non-federal contracts. When this goal applies, small business preferences are visibly displayed on advertised projects, signaling to contractors and small firms alike that Caltrans is serious about meeting its targets. This emphasis on inclusive practices is instrumental in helping small businesses build their portfolios and strengthen their foothold in the industry. How to Get Involved For small businesses and DBEs interested in the opportunities Caltrans provides, the first step is simple: reach out. The Caltrans District 8 Small Business Program is accessible, supportive, and ready to answer questions from prospective contractors. With a dedicated contact at the District 8 Small Business Program office and resources available through the Office of Construction Contract Awards, Caltrans makes it easy for businesses to take the leap. For questions or assistance, interested parties can email the District 8 Small Business Program at d8smallbusiness@dot.ca.gov or call the Office of Construction Contract Awards at 916-227-6299. As the landscape of California’s infrastructure continues to grow, so too does the role of small and disadvantaged businesses in shaping its future. Through Caltrans District 8’s Small Business office, the agency has set the stage for greater diversity, innovation, and economic opportunity within the state's procurement ecosystem. By empowering small businesses, Caltrans is driving not just the roads and highways, but the communities they serve, toward a brighter, more inclusive future.