Amidst a global decline in film and television production, as studios and streaming platforms reduce their budgets for new projects, tax incentives have become a crucial factor in maintaining competitiveness. The Directors Guild of America (DGA) is actively advocating at federal and state levels to enhance these incentive programs, focusing on job creation and retention within the U.S. To counteract the shift of productions to countries with more attractive tax schemes, efforts are being made in key locations such as California, New York, and Washington, D.C. These initiatives aim to bolster local economies, support small businesses, and maintain the industry's infrastructure.
Promoting Production in California: The Keep California Rolling Campaign
In response to the growing challenge posed by international competitors, California is taking steps to revitalize its entertainment sector. Led by Rebecca Rhine, the Entertainment Union Coalition (EUC) has launched the Keep California Rolling campaign. This initiative seeks to ensure that California remains an appealing destination for film and television production by enhancing its tax incentive structure. By increasing annual funding from $330 million to $750 million, the program aims to attract more productions while creating sustainable jobs for union members and supporting local communities.
The EUC's strategy emphasizes collaboration among various labor organizations to advocate for policies that prioritize job creation. Despite California's historical prominence in the entertainment industry, recent trends indicate a significant migration of work abroad due to more favorable financial incentives elsewhere. To address this issue, the Keep California Rolling campaign focuses on advancing the Governor’s proposal to update the state’s jobs-based tax incentive program. This expansion not only aims to draw productions back to California but also to stimulate tourism and strengthen the state's economic foundation by supporting small businesses and infrastructure development.
Strengthening New York and Federal Policies: A Unified Approach
New York, another pivotal hub for the entertainment industry, faces similar challenges in retaining productions amidst intensifying global competition. Neil Dudich leads efforts to expand New York’s state production tax credit program, ensuring that any enhancements benefit workers rather than solely boosting studio profits. This initiative underscores the importance of safeguarding and expanding employment opportunities within the industry, reflecting a commitment to fostering a skilled workforce and sustaining community growth.
Nationally, Russell Hollander and Mike Stoever collaborate with IATSE representatives to educate Congress about the necessity of implementing federal tax and trade policies designed to encourage domestic film and television production. During meetings with bipartisan lawmakers, they emphasize extending the existing Section 181 tax deduction and exploring the possibility of introducing a federal film and television tax incentive. These measures aim to level the playing field against international incentives luring productions overseas. Ultimately, the overarching goal is to bring high-quality jobs back to the United States, benefiting both workers and the broader economy. Through these comprehensive strategies, the DGA and its partners strive to fortify the American entertainment industry, ensuring it thrives in an increasingly competitive global market.