Hollywood Unions Wonder Whether Next California Governor Will Share Newsom’s Commitment To Expanding Film Tax Credits

The leaders of the major Hollywood unions are glad to hear outgoing California Governor Gavin Newsom’s proposal Monday to expand the state’s Film & TV Tax Credit program yet again, but they won’t be declaring victory until his successor makes it a cornerstone of their tenure, too.

“We thank the Governor for his commitment to our members and this industry,” the Entertainment Union Coalition — which includes SAG-AFTRA, IATSE, DGA, WGAW, Teamsters, AFM, and LiUNA — said in a statement Monday morning. “The EUC is looking forward to working with the next Governor and the Legislature on a proportionate response that takes into account the size of the workforce and infrastructure in California and also modernizes the various structural elements that limit the program’s competitiveness. What is clear is we all share the desire to see our industry thrive in California.”

Newsom declared on Monday that California needs “at least” $1 billion in annual tax credits allocated for film and television productions, which would boost the state’s incentive program by another $250 million. This comes after the soon-to-be ex Governor Newsom pushed the state Legislature to approve a massive infusion into the fund last year, more than doubling it from $330 million to $750 million.

The state has been somewhat successful in luring production back to the state. For example, CBS’ Tracker now films in California as of Season 4, as do Netflix’s The Night Agent, Apple TV’s Stick, and Prime Video’s Mr & Mrs Smith. Other notable productions taking advantage of the state’s incentive program are Big Little Lies, I Love LA, Fallout, and The Pitt, to name a few.

Still, particularly in Los Angeles, production declines continue. The state is competing with international territories as well as other states with more robust incentive structures.

Teamsters Local 399 Secretary-Treasurer and At-Large Vice President told Deadline in a remark of her own that the program “has always and will always be about jobs,” and that Newsom’s proposal does not go far enough to address the urgent need in California.

“And while we have seen it work for our state, without a real commitment to further invest in our program, and make key structural changes, we will continue to lose competitive ground as others continue to poach the economic benefits of our industry,” her statement reads.

Dougherty argues that California’s program needs to be uncapped in order to compete with regions like New York, as well as those abroad — and that is only one part of the solution. She also reiterated the need to continued support for a federal tax incentive, which lawmakers officially introduced to Congress in September.

“While we appreciate the Governors support of our industry, and the important jobs it creates, his comments today come a day late and yet again, some dollars short,” Doughter said in her statement. “Our industry cannot survive on expressions of support alone. We need action, investment, and a real commitment to keeping these jobs in California. Teamsters and the other Hollywood Unions and Guilds are prepared to do the work. The question is whether our next Governor will match that commitment.”