Support for California's Motion Picture and Television Production Tax Credit
EP urges state legislators to expand California’s Production Tax Credit.
Governor Newsom's recent proposal to expand the California Motion Picture and Television Production Tax Credit to $750 million annually is an important step in bringing more productions back to California, creating thousands of jobs and supporting the businesses and workers that drive our industry.
EP’s President & CEO is calling on state legislators to support this proposal and help secure the future for film and television production in the state.
To The Honorable Caroline Menjivar and Honorable Nick Schultz:
On behalf of Entertainment Partners (EP), I am writing to express our support for Governor Newsom’s proposal to increase the California Motion Picture and Television Production Tax Credit program to $750 million annually.
EP is the largest motion picture payroll services company in the world. When a production is made, EP is the entity that pays the hundreds of talent and crew working on each production, ensures that the correct tax withholdings are made and remitted to the government, and computes and forwards the pension, health and welfare contributions to the various union pension and benefit funds. In this capacity, we are among the largest private employers in California.
EP serves productions wherever they film, and as a consequence, we are uniquely positioned to see the decline in California’s once dominant position as the leading state for film and television production. The reduced production in California is due to many factors, but most prominent among these is that the California tax credit program is simply not competitive enough when measured against those programs in other states and countries with which California competes. As a result, productions that could be made in California are increasingly being filmed elsewhere, taking tens of thousands of jobs with them.
The Governor’s budget proposal will be an important first step in reversing this trend and bringing back the thousands of good jobs that have enabled generations of Californians to provide for their families and their futures and support a vibrant California economy and culture.
We respectfully request that you support the Governor’s proposal to restore the California production tax credit when it comes before you in this session.
Very truly yours,
Markham L. Goldstein
President & Chief Executive Officer
-