Amid a historic production slump in California, independent films are increasingly being tapped to receive tax credits to shoot in the state.
Of the 48 titles selected to receive filming subsidies, only five are feature films, announced the California Film Commission on Monday. They account for roughly an even split of the $96 million in tax credits that the state is allocating this round, down from years past when they made up a larger share of the total allotment.
The rising frequency of independent films qualifying for California’s film and TV incentive program reflects a broader trend in which big-budget, studio films are opting to shoot in states and countries with cheaper labor that give more subsidies to host Hollywood. The U.K. has become a favored destination, owing its popularity to allowing above-the-line costs, like pay for directors and actors, to qualify, among other reasons.
This shift led to Gov. Gavin Newsom earlier this year moving to more than double the amount California gives to productions per year, from $330 million to $750 million a year. It’s an aggressive bid to revitalize filming across the state after it was decimated by the strikes and curb the yearslong flight of production away from the region. Details are still being ironed out.
“California didn’t earn its role as the heart of the entertainment world by accident — it was built over generations by skilled workers and creative talent pushing boundaries,” Newsom said in a statement. “Today’s awards help ensure this legacy continues, keeping cameras rolling here at home, supporting thousands of crew members behind the scenes and boosting local economies that depend on a strong film and television industry.”
In total, the titles are expected to generate $664 million in spending across the state. They’re projected to hire roughly 6,500 cast and crew, as well as 32,000 background performers, all of whom will be paid more than $302 million in wages. California, unlike other states, utilizes a jobs ratio ranking that accounts for wages to below-the-line workers to select productions that will receive tax credits.
This round of tax credits is headlined by an untitled Netflix title that will get $20 million in tax incentives for $106 million in qualified spending. Another major studio feature: the sequel for Sony Pictures’ One of Them Days, which highlights Los Angeles as a backdrop for the production and will get $8 million in subsidies.
Other major studios chosen to receive incentives this round include Warner Bros. Pictures for Blow Up the Chat and Twentieth Century Studios for Bell, which will get $6.9 million and $4.5 million in credits, respectively.
“This industry is core to California’s creative economy and keeping production here at home is more important than ever,” said Colleen Bell, director of the California Film Commission, in a statement. “This round of tax credits shows our commitment to supporting both indie and studio productions while spreading the economic benefits of filming across the state.”
A record 51 films were tapped to receive tax credits in the last round announced in March, the highest number of titles selected in a single round of the state’s film and TV incentive program. They included a slate of 46 independent movies, which accounted for roughly $43 million of the total $101 million distributed.
In the round announced on Monday, feature films accounted for slightly more than half of the total allotment, with $48.4 million of $96 million.
Of the 48 productions selected, 22 of them will shoot a large chunk outside the L.A., including Ventura County (Make A Wish, The Teller, Things We Cannot Touch), San Francisco and the Bay Area (High Priestess of Souls, Our Kind of Cruelty), El Dorado and Placer Counties (Gold Mountain), San Bernardino and Riverside Counties (Superbloom, The Heidi Fleiss Story), Bakersfield in Kern County (Counting by 7s) and coastal communities such as Half Moon Bay and Costa Mesa (Sponsor, Doll). There’s a five percent bump for filming in out-of-zone regions. Fifth Season’s Gold Mountain plans to film primarily outside of L.A.
See the list of other productions that were selected to receive tax credits here.
