Title: California Government Plans to Boost the Film and TV Industry; Challenges Ahead for ‘Hollywood North’
The Canadian film and TV hub, famously referred to as ‘Hollywood North,’ may soon face significant challenges. This comes as the California government is reportedly planning to offer substantial assistance to its original namesake – the Hollywood film and TV industry.
California’s Governor, Gavin Newsome, has proposed a plan to drastically increase the state’s film tax credit program. The proposed hike would more than double the current amount of $330 million a year to a whopping $750 million a year.
Newsome made his intentions clear when he said, “This is about jobs, investment, and acknowledging that the world we once dominated is now our competition.”
Meanwhile, in British Columbia, the government currently provides a 28% production services credit to both domestic and international producers, irrespective of any Canadian content requirements. However, the recent provincial election saw B.C. Premier David Eby promising to increase this credit to 36%.
Following his re-election, Eby made a commitment to keep the B.C. film industry competitive in the face of rising pressures from major streaming platforms. He assured that his administration is ready to support the sector, emphasizing, “We’re going to work with you to ensure our industry remains competitive.”
He further added, “While we may not be able to outbid the lowest bidders in the United States, we can certainly compete with the best. And with the talented teams and crews we have here, we can deliver some of the biggest productions.”
As per estimates by CreativeBC, a non-profit organization dedicated to promoting the creative sector, the B.C. film industry employs over 45,000 people. Moreover, in 2022 alone, the industry was responsible for an impressive $4.4 billion in direct spending. During the same year, B.C. provided nearly $900 million in industry tax credits.
In light of these developments, the California government’s plans to boost its film and TV industry could indeed mean new pressures for ‘Hollywood North.’ However, with the B.C. government’s commitment to keeping the sector competitive, it’s a space to watch for potential investors and those interested in the industry.
© 2024 Global News, a division of Corus Entertainment Inc.
