Comment guest written by
Ed Lammi
Ed Lammi is a former executive vice-president of the production of Sony Pictures Television. He retired in 2023 after 36 years in Sony.
Once upon a time, Hollywood was not just a neighborhood. It was the beating heart of film and television production in North America. But in the past two decades, the lively lights of Los Angeles have decreased.
It is not for lack of talent or vision, but because other cities and countries have taken an opportunity and have offered better tax incentives to attract industry.
This exodus hit California harshly. In recent decades, southern California lost thousands of production jobs. They are middle class workers: set manufacturers, costume designers, handles, baffers, publishers, caterers, pilots, cameras operators and more. These are Californians who pay taxes on the income of states, send their children to local schools and spend their money in local businesses.
They represent the backbone of this industry and we let them escape. California cannot risk losing what we have worked for a century to build.
Many have been said On the proposal of Governor Gavin Newsom of Increase the credit and television tax credit program in California $ 750 million per year – and it is absolutely necessary. But we also need the changes that have been proposed In Assembly bill 1138 And Senate bill 630. Namely to increase credit to 35% of expenses align more competitive with other states.
In addition, half-hour qualification comedies are an important addition. The comedies which were once mainly sitcoms shot on the Hollywood sound scenes are now more likely to be shot unique style, similar to films and dramas. They can be set up to shoot in places with favorable tax credits.
Example: when I was still at Sony Pictures TV, we “Cobra Kai” turned in the suburbs of Atlanta – due in large part to the production incentives of Georgia qualified semi-hour comedies. Ironically, the Reboot television series was inspired by the 1984 feature film “The Karate Kid”, which was established in a creative manner in the San Fernando valley.
California must go further. Although the problem of including the cost higher than the line is somewhat controversial, a version is necessary for compete with states who offer it. A potential solution consists in qualifying only the part of scale of the costs paid to the talents above the line. This would solve the concern that some very remunerated artists would allow production to obtain a disproportionate amount of the tax credit.
It also aligns much more closely with the main intention of the fund: to qualify the basic workers of wages on a scale.
Each program that shoots in California supports hundreds of jobs. He pumps money in local savings, wooden sites to restaurants, from car rentals to dry cleaners. This is why other places have created their own tax credit programs. They recognize that production expenditure is a good economic development policy, generating a return on investment several times the amount of the credit. In Los Angeles, each dollar in cinematographic and television tax credit awarded generate $ 1.07 in state and local tax revenues and increases local wages by $ 8.60.
Our crews have resisted a lot in recent years: a pandemic, two major strikes, a Abrupt contraction of industry And now recent fires from Los Angeles. They are impatient with coherent and lasting work.
My wife and I moved to California in 1979 to work in this company. We have built a life, a family and a future here. I want this opportunity to stay for the next generation of Californians. No one should have to leave California in pursuit of the Hollywood dream.