Gavin Newsom’s aim to jack California’s film and television tax incentives program up to $750 million annual is on the legislative precipice of coming true, but for an Issa Rae produced One of These Days sequel, a bio pic of infamous Hollywood madam Heidi Fleiss, an untitled Netflix project, the Ang Lee helmed Gold Mountain and 44 other films tax credit day has already arrived.
In total, with the feature from the Ted Sarandos and Greg Peters run streamer snagging $20 million alone, the allocation to 48 projects his round from the Golden State equals about $96 million. Perhaps reflecting the changing finances and geographical realities of the industry, 43 of those 48 projects are independent film, with many working with budgets of $10 million or less.
The wear and tear of Donald Trump’s erratic tariffs policies aside, as Texas hikes its incentive program to $150 million a year, Canadian provinces put more on the continental table and New York recently increased its film and TV tax credits to $800 million a year, the battle to keep production in the home of Hollywood has become ever more challenging over the last year.
On the other side, as some significant refundable changes to the current Cali program kick in on July 1, the 48 projects hand a golden ticket of sorts by the Golden State look like a pretty damn good investment on the ledger. According to the California Film Commission, the films are anticipated to “generate $664 million in total spending throughout the state, including $485 in qualified expenditures and more than $302 million in wages for California workers.”
A full breakdown on the allocations and the estimated returns can be seen in the chart below – with that mysterious Netflix project bubbling up nearly $106 million in qualified expenditures over 110 filming days with 128 cast hired and 425 crew.
In a media gift that keeps on giving over 30 years after Fleiss was arrested and hit the spotlight, The Heidi Fleiss Story from Pink Promise Films is looking to make over $9 million in those qualified expenditures on the state’s $2,3 million in credits. The less than $10 million budget flick, the latest of several made about Fleiss over the decades, sets out to have 28 filming days in the state in what is a very California story with a hired cast of 41 and a crew of 90. Cited as an indie with a budget over $10 million, the Firth Season produced Gold Mountain from Oscar winner Lee received nearly $3 million in tax credits and is expected to generate expenditures for the state of $27.4 million over 40 filming days and a hired Cali cast of 58 and crew of 170 .
Say what you like about production in California, and it is often more expensive than other jurisdictions, but those returns to the local economy here in LA and elsewhere in the state are real money that support real business and vendors — and create real tax revenues down the line.
“California didn’t earn its role as the heart of the entertainment world by accident — it was built over generations by skilled workers and creative talent pushing boundaries,” Gov. Newsom said Monday morning as the tax incentives were made public.” Today’s awards help ensure this legacy continues, keeping cameras rolling here at home, supporting thousands of crew members behind the scenes and boosting local economies that depend on a strong film and television industry.”
