All articles tagged with #tax credits
The California Film Commission awarded $226.1 million in tax credits to 35 feature films, including the 'Michael' sequel and a new Pixar project. These productions are expected to generate $1.08 billion in local spending and create 30,000 jobs.
The California Film Commission has approved $226.1 million in tax credits for 35 films, including the 'Michael' sequel and a new Pixar project. These productions are expected to generate over $1 billion in local spending and create thousands of jobs, reflecting the state's expanded incentive programs.
A new EY report commissioned by Hollywood unions reveals that US studios now spend only 42% of film budgets domestically, down from 74% in 1999. TV spending has also declined, dropping from 94% to 64% of the total. This shift has cost the US market an estimated $4 billion annually. Congress is currently debating a 20-30% federal production incentive to counter international competitors and revive domestic jobs.
The IRS has included a new citizenship and work-authorization question in the draft 2026 Form 1040, prompting criticism that the move weaponizes tax compliance for immigration enforcement and threatens to exclude millions from federal benefits.
The U.S. Treasury and IRS released proposed rules for the Education Freedom Tax Credit, the nation’s first federal school voucher program, set to launch January 1, 2027. The initiative offers a dollar-for-dollar tax credit of up to $1,700 per individual ($3,400 for joint filers) for donations to scholarship-granting organizations. These funds can cover private school tuition, tutoring, and public school expenses like special education services. While the program aims to expand choice, it faces opposition from teachers' unions and civil rights groups who fear reduced public school funding and increased racial disparities. Democratic governors face pressure to decide whether to opt their states into the voluntary program before the January deadline.
Gov. Gavin Newsom signed Assembly Bill 2222, creating a refundable tax credit to support local news employment. The law offers $20,000 per journalist for the first five hires and $15,000 for additional staff, aiming to reverse a 12,000-journalist decline since 2002. While supporters call it a vital lifeline, critics warn of uncapped state liability and argue it subsidizes wealthy owners rather than struggling outlets.
A New York Times report reveals Meta has claimed billions in research tax credits by labeling its AI data centers as experimental 'pilot models.' This strategy, which offsets costs for Nvidia chip purchases, has made Meta the largest beneficiary of the credit but raises legal risks and financial concerns.
A bipartisan group of lawmakers introduced the Motion Picture, Television, and Entertainment Revitalization Act (MPTERA) on September 24, 2026, proposing a 20% federal tax credit for film and TV production, potentially reaching 30% with bonuses. The legislation aims to reverse the loss of over 50,000 jobs in Los Angeles and compete with international subsidies. While industry leaders view the move as a critical step to restore U.S. production dominance, concerns remain regarding potential cost inflation and the timeline for implementation, which is not expected to take effect until 2027.
California Governor Gavin Newsom signed two laws expanding the state’s film tax-credit program: one extends protections and simplifies monetizing credits while broadening them to include post-production work (editing, scoring) even for films shot outside the state, and a new $10 million credit rewards post-production done in California for projects shot elsewhere. The changes aim to deter productions from relocating to rival states amid ongoing competition, with industry groups praising the move even as California navigates broader studio politics, including Paramount’s merger challenges.
Democrats are weaponizing Republicans’ meg bill tax breaks for data centers—chiefly via the Opportunity Zones credit—to frame GOP policy as fueling local backlash ahead of the midterms, while Republicans defend the credits as broad and not limited to data centers; the dispute ties into national-security and AI regulation debates, with Sanders and Casar proposing a pause on advanced AI and a ban on superintelligence until oversight is in place. The political backdrop includes a shortened House pre-election session, Trump’s plan to campaign for dozens of Republicans, and Third Way unveiling a 20-point centrist platform for 2028.
California lawmakers introduced AB/SB 186 as part of a budget trailer bill to blunt the impact of new caps on the state’s $750 million film/TV tax credit program. The measure would exempt indie productions from the caps, allow productions to monetize 95% of their refunds (up from 90%), and shorten the refund timeline from five years to two. It would also extend the expiration window for credits earned before 2025 to 15 years. Backed by the MPA, unions, and Governor Newsom, the proposal aims to preserve California’s status as a Hollywood hub, but critics warn broader caps and policy changes still loom as a risk as lawmakers race to adjourn.
California’s film and TV tax credits increasingly fail to attract projects, as productions relocate to cheaper hubs like Canada, Georgia, the U.K., and Ireland due to higher costs and bureaucratic permitting in L.A. The trend, accelerated by the pandemic and writers’/actors’ strikes, has shaved thousands of local jobs and left many studios and post-production firms shuttered, even as expanded incentives introduced in 2024–25 show some signs of revival. A few series (e.g., The Pitt, Fallout returning to L.A. with California credits) hint at a partial rebound, but the industry’s center of gravity continues to move away from Los Angeles and California toward broader global options.
The California Film Commission awarded nearly $38M in Golden State tax incentives to Paramount's Clueless series and Viola Davis' Ascent, as part of a round that granted about $145.5M to nine TV projects; collectively the nine shows are expected to spend $608M in California, create thousands of cast/crew jobs, and inject significant local spending, with Clueless receiving about $16.3M and Ascent about $21M. Production for the pair is slated for 2027, even as Paramount faces an antitrust suit over its Ellison–WBD merger.
Rep. Sam Liccardo unveiled the SKILL Act, a policy to spur private investment in AI-ready training by authorizing $500 million annually in state-distributed tax credits for companies that fund curricula development, internships, apprenticeships, labs, and other learning initiatives at colleges and universities; eligible employers would get $2,500 for each student who completes a program and an extra $2,500 for each graduate they hire, with support from lawmakers like Rep. Jimmy Panetta and industry groups such as Nvidia, TechNet, the Digital Chamber, and the Chamber of Progress.
A coalition led by the Motion Picture Association warns Gov. Newsom that proposed caps on California film tax credits (a $5 million annual limit for three years and a permanent 70% liability cap starting in 2030) would chill production and cost tens of thousands of middle-class jobs, pushing for an exemption to keep credits fully usable; state officials argue the cap is a budget compromise with some credits still redeemable or transferable.