Background and Current Crisis

The film and television industry in Los Angeles is facing unprecedented challenges due to ongoing wildfires in the region, resulting in severe economic and operational disruptions. With damages estimated at $150 - $250 billion overall, the crisis has further decimated Los Angeles and California's production industry, leading to:

• A significant decline in production over the past five years, according to FilmLA:

  • 33% decrease in commercials

  • 36% decrease in TV

  • 28% decrease in film

• Insurance underwriters enacting blanket moratoriums on new policies, halting new shoots in Los Angeles.

• Rapid spread of misinformation regarding permits not being granted.

Inclusion in State Emergency Relief Funding Strategy

To address these challenges, we propose a comprehensive strategy aimed at both immediate recovery and long-term stability for the California film, TV, commercial & post production industry.

We must ensure that the film, TV, commercial, and post production sectors are included in Governor Gavin Newsom’s $2.5 billion emergency funding package and California’s Marshall Plan and other state and federal-level recovery efforts. This includes:

 

Key Emergency Asks

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Uncapping Tax Credits and Rebates

• Temporarily, for three years, remove caps on existing tax incentives and rebates to encourage production activity in the region.

Uncapping Mediums

• Temporarily, for three years, include short-form productions—such as COMMERCIALS and other smaller projects— and POST PRODUCTION to stimulate production activity in the region.

Reducing or Eliminating Permit Fees

• Advocate for a temporary waiver or significant reduction of state & local permit fees to lower the cost of production.

Addressing Insurance Restrictions

• Work with state and federal authorities to advocate for temporary measures addressing the insurance moratorium.

• Advocate for a state-backed insurance program, similar to Florida’s Citizens Insurance or national FAIR Plans, to support productions during the crisis. These models show how government intervention can stabilize industries when private insurers withdraw.

Benefits of the Film, TV, & Commercial Industry

California’s Film and Television Tax Credit Program has demonstrated substantial economic benefits for the state. A study by the Los Angeles Economic Development Corporation (LAEDC) revealed significant financial gains:

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• $24.40 in total economic output for every dollar allocated

• $16.14 in gross domestic product (GDP)

• $8.60 in wages

• $1.07 in state and local tax revenues

 

The impact of the film and television industry extends far beyond production sets. Each location shoot brings significant economic activity, creating jobs and fueling a ripple effect across Los Angeles. Local dry cleaners handle costumes, restaurants cater to crews, hardware stores provide materials, and countless small businesses—from barbershops to florists—rely on this activity to thrive.

 

Revitalizing production in Los Angeles means safeguarding these businesses, protecting local jobs, and ensuring our city remains a vibrant hub for creativity and commerce. By investing in emergency relief and targeted incentives, we can rebuild not just the industry, but the community that supports it.

Newsom’s $750M Tax Incentive Expansion

We are grateful for this proposal and believe it is a vital step forward. However, given the current emergency, as well as competition from other states and overseas, additional assistance is urgently needed. Specifically, we recommend:

• Including all commercials, post production and other smaller projects in the tax credit program.

• Uncapping tax credits and rebates to increase eligibility.

• Reducing bureaucratic red tape statewide and locally to streamline production processes.

 

 

Collaborators

 

CA United

CA United is a grassroots coalition of over 5,000 engaged California residents. We range from Film & TV production professionals and small business owners to blue collar employees and high level executives spanning many industries. Most importantly, we are Californians, united for a common purpose. www.caunited.org

 

TUSC

THE UNION SOLIDARITY COALITION was founded by writer/directors who were moved to connect with crew affected by the 2023 WGA strike. Watching people honor our picket lines touched and inspired us, and presented us with a model for unity in action. Though the strike is the catalyst for creating TUSC, we feel this is just the beginning of a larger, urgent movement of solidarity between all of the industry unions, and also our coworkers who aren’t part of a union. We want to think big about how we can support each other in the face of a national labor crisis. www.tusctogether.com

 

If interested in supporting these relief efforts and would like your company listed, please reach out to CA United Board Member Pamala Buzick Kim.

 

You can also sign our petition HERE.