California tax credit extension suspended | New

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The five-year extension of California’s $330 million-a-year production tax credit program has been put on hold, but apparently only until next year and with the backing of its political supporters.

The bill, known as SB 485, which was to extend the credit from its current expiration date of mid-2025 to 2030, had to be signed by state Governor Gavin Newsom before the end of the California’s current legislative session next week. But State Senator Anthony Portantino, the lead author of the legislation, has now asked that the bill be placed in the “inactive docket”, meaning it will not be reconsidered until the start of the session. legislative of 2023.

The move was reportedly made to allow lawmakers to refine a recently added provision requiring recipients of the 20% to 25% credit to submit a “diversity work plan” reflecting the makeup of California’s population. Recipients who have met their diversity goals would get an additional 4% credit.

In a statement, Portantino said that given Newsom’s commitment to the expansion “it does not seem urgent to push SB 485 through at this time, while there is still time to act thoughtfully before 2025”.

A statement from Newsom said: “The Film Tax Credit has been a huge success. This week alone, we had four new big-budget films and 14 independent films receiving tax credits for filming in California, which will generate hundreds of millions in expenses and thousands of jobs across the state. .

The statement adds that Newsom is “committed to working with the legislature and stakeholders next year to expand and strengthen this program, which helps stimulate the state’s economy and supports California’s iconic film industry.” .

Recent movies that have been lured to California in part by the state’s incentive program include High-speed train and King Richard.

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