00:00En un esfuerzo de proyectos en Hollywood,
00:02Gov. Newsom went to a Burbank movie studio today
00:05to sign a $750 million film and TV tax credit.
00:09People in the industry hope the measure
00:11will help stem the crisis in Hollywood.
00:13Eyewitness News reporter Rob Hayes
00:15is live in Burbank with those details.
00:17Rob.
00:19Yeah, the past five years have been dark times
00:21for the film industry here.
00:23We've had COVID, the writer's strikes,
00:25the Hollywood strikes,
00:26and all those generous incentives from other states.
00:29It's really put a dent in Hollywood-dependent businesses,
00:32but California lawmakers say they've got a solution.
00:36In the land of films and celebrities,
00:38sites like this are hard to find these days.
00:42L.A. Bay shoots, industry insiders say,
00:44have been fleeing California for other states and countries
00:47with considerably bigger incentives.
00:502024 was the worst year on record
00:52for on-location filming in L.A.,
00:54even except for COVID.
00:562025 has actually been a little worse.
00:58But that could be changing soon.
01:03Governor Gavin Newsom this morning
01:04signing legislation that more than doubles
01:07the tax credits the state can offer to producers
01:09who choose to shoot in California.
01:12What had been a $330 million cap
01:15will now go up to $750 million.
01:18You've got to be competitive,
01:19and now we're competitive.
01:21You don't have to be the cheapest place to do business.
01:23That's never been California's brand or model.
01:25Going back a century, we want to be the best place.
01:28Newsom holding a news conference
01:30in this brand-new Warner Brothers studio in Burbank.
01:33Perhaps a day early, though,
01:35a corresponding piece of legislation,
01:37AB 1138, is expected to reach his desk tomorrow.
01:421138 would expand the types of productions eligible for the tax credits,
01:46as well as the amount of money productions would be able to collect.
01:50When productions shoot here in California,
01:52the money ripples through every corner cafe,
01:55hardware store, dry cleaners,
01:57and all across our communities.
01:59Los Angeles Mayor Karen Bass trumpeting the new funds,
02:03but also admitting L.A. needs to work harder
02:05to attract more film shoots.
02:07How can we make filming easier?
02:09How can we make the permit process more streamlined?
02:13How can we make it more cost-effective to film here?
02:17But experts say the new tax credits
02:19won't wipe out the competition with other states.
02:22In fact, New York still doles out more in tax incentives each year.
02:26But insiders say the fresh stream of California funds
02:29will certainly make a difference.
02:31We should start seeing some real impact
02:34in the last quarter of 2025,
02:36and it should be fully helping in 2026.
02:41Again, Assembly Bill 1138,
02:43the second part of all this is expected to be passed tomorrow
02:46and land on the governor's desk to be signed.
