![](\"https:\/\/deadline.com\/wp-content\/uploads\/2022\/03\/Frances-Ford-Coppola.jpg\")
<\/p>\nA projected $22.5 billion deficit has California Gov. Gavin Newsom proposing some belt-tightening and program cuts, but the financial sun is still shining bright on the state’s more than $400 million film and television tax credits program.<\/p>\n
Putting forth a $297 billion 2023-24 state budget plan Tuesday, the newly re-elected Democrat reiterated his desire to extend the annual big- and small-screen initiative into the next decade and make some big changes to the program.<\/p>\n
“The Budget proposes to extend the California Film Commission administered Film and Television Tax Credit Program at $330 million per year for five years beginning in 2025-26 (Program 4.0) and make it refundable prospectively for the new Program 4.0,” says the proposal introduced by Newsom this morning in the opening round of getting to a state budget.<\/p>\n
Around in a lesser sense since 2009, California’s film and TV tax credits program was first introduced in its current, jobs-focused form in 2014. <\/p>\n
Renewed periodically, Newsom plumped up the program to $420 million for two years in 2021 in part to counter the economic effects of the pandemic and to attract more relocating series. With a long industry history but much smaller production bench compared with California, New York state also offers $420 million in film and TV tax credits. While British Columbia has a generous program that has attracted American productions to Vancouver and the surrounding region for decades, in the U.S. it is industry-thriving Georgia, which handed out $1.2 billion in credits in 2021, that is No. 1 in credits. <\/p>\n
In that increasingly competitive market, the introduction of a refundable element to the latest version of the program puts California in a similar position as other lucrative jurisdictions domestically and in Canada. “Making the credit refundable will benefit a wider range of productions and ensure the competitive program will maximize economic benefits to the state,” the latest budget proposal states. “Credit recipients with insufficient tax liability will be able to claim a tax refund at a discounted value over multiple years to lessen the revenue loss to the state. Credits applied against tax liability will retain their full value.”<\/p>\n
Along with various legislators in Sacramento, Hollywood fav Newsom had previously suggested extending the program five more years. However, that notion fell by the political wayside last year amidst scrutiny of increased diversity amendments to the tax-credit system.<\/p>\n
Now, it’s all clearly back on the table. Colleen Bell, the Newsom-appointed head of the California Film Commission, unsurprisingly says that’s a good thing.<\/p>\n
“The five-year extension and provision to make tax credits refundable will give industry decision makers more options and the certainty they need to make long-term investments here in the Golden State,” she said after the budget proposal was released. “This will translate into more production-related jobs, spending and opportunity.” <\/p>\n
“Refundability will enable California to compete more effectively with jurisdictions around the world that offer this option as part of their tax credit,” Nancy Rae Stone, deputy director for the Film & TV Tax Credit Program, told Deadline. “It opens the door to production companies that want to film their projects here but do not have sufficient in-state tax liability to utilize a non-refundable tax credit.”<\/p>\n
In terms of the present film and TV program, the next big-screen application period is from January 30-February 1. For the small screen, applications are being taken digitally for recurring and relocating TV series March 6-8, and for new shows March 13-15. Successful film applicants will be unveiled March 6, and winning TV applicants on April 17.<\/p>\n
<\/p>\n
![](\"https:\/\/deadline.com\/wp-content\/uploads\/2023\/01\/jason-ning-1.jpg\")
<\/p>\n
![](\"https:\/\/deadline.com\/wp-content\/uploads\/2023\/01\/Wyatt-Russell-Kerry-Condon-Bryce-McGuire.jpg\")
<\/p>\n
![](\"https:\/\/deadline.com\/wp-content\/uploads\/2019\/06\/feartwd-s5-1-e1559941385856.jpg\")
<\/p>\n