'We'll see how long that lasts': California Gov. Newsom proposes film tax credit increase, criticizes Georgia
Updated at 3:00 p.m.
Gov. Gavin Newsom says he will ask his state’s legislature to expand California’s film tax credit from $330 million to $750 million annually.
During a weekend press conference in Hollywood, Newsom discredited Georgia and its billion-dollar film tax credit.
“I don’t know how they can continue to afford that program, but we’ll see, we’ll see how long that lasts down in Georgia. But, but I will say, compare the values of this state to the values as it relates to workers and women’s rights. LGBTQ rights, civil rights, voting rights down in the state of Georgia,” Newsom said. “I think it’s a pretty damn easy decision.”
“After turning a nearly $100 billion budget surplus into a $47.5 billion budget deficit, Governor Newsom is the last person on earth who should question another state’s fiscal standing. Georgia’s record of paying down debt while cutting taxes and returning billions of dollars back to taxpayers needs no defending,” said Garrison Douglas, spokesperson for Gov. Brian Kemp. “And by the way, how much does a gallon of gas cost in California?”
When Georgia passed a bill in 2019 that limited access to abortion at 6 weeks of pregnancy, many large studios, including Netflix, WarnerMedia, and Disney, said they would likely reconsider doing business in the state.
However, the controversial law that went into effect in 2022 seems to have had little effect on the state’s film industry.
Georgia is currently the location for 29 television and movie productions, including ABC’s “Will Trent” and HBO’s “Peacemaker.”
Many of the productions would have otherwise been filmed in California if it hadn’t been for Georgia’s massive film tax credit.
According to Newsom, the program needs to expand because more productions are applying for California’s film tax credit than the state currently accommodates. 71% of the rejected projects have moved to film in other states.
Georgia’s program provides an income tax credit to production companies that spend at least $500,000 on qualified productions. According to the Georgia Department of Economic Development, in-state spending on Georgia filming in 2022 was $4.4 billion.
However, the tax credit costs Georgia about $1 billion in lost tax revenue, prompting some lawmakers to push for limits.
Many of those attempts have failed, including HB 1180, which would have doubled the minimum amount that productions must spend in Georgia to $1 million to qualify for the base 20% tax credit.
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