On Wednesday, Governor Gavin Newsom announced a significant $750 million tax credit initiative aimed at revitalizing California’s film and television production landscape.
The announcement, made during an event in Burbank alongside Los Angeles leaders, is designed to entice filmmakers back to California, addressing challenges the industry has faced in recent years.
Notably, this new initiative will not only benefit Hollywood but also aims to support emerging film endeavors in regions such as San Diego.
Local lawmakers in San Diego have been actively advocating for amendments to the film tax credit, which could significantly impact the development of a new studio set to open in Chula Vista, known as the Chula Vista Entertainment Complex.
Filmmaker Aaron Roberts, a native of San Diego, is spearheading this ambitious $85 million project, which is set to bring various productions to the area.
The first phase of the entertainment complex is slated to open in 2026 at the new Millenia Library in Chula Vista, featuring podcast studios, photography rooms, and editing spaces. These facilities will cater to diverse projects, ranging from social media content to smaller film initiatives.
In addition, the Chula Vista Entertainment Complex intends to provide training programs for film and television career pathways in local high schools, also exploring collaborations with colleges and universities.
Looking ahead, the second phase is scheduled for a 2027 launch, which will focus on acquiring 8.6 acres of city land adjacent to the library to construct soundstages for virtual production.
This innovative filming approach allows directors to project digital backgrounds onto LED screens, enhancing production quality and efficiency.
Aaron Roberts expressed confidence in Chula Vista becoming a thriving hub for film production as they implement their programs.
In his remarks, he stated, “We’re confident that San Diego is going to be – and Chula Vista in particular – a real hot spot of film production, once we get all our programs rolling.”
The $750 million film tax credit announced by Newsom marks a substantial increase from the current $330 million program, more than doubling the available funding.
Since its inception in 2009, the California film tax credit has generated an impressive $27 billion in economic activity, resulting in over 209,000 jobs in the entertainment sector and supporting nearly 850 projects according to the governor’s statement.
However, the state’s entertainment industry has faced numerous challenges, including a production slowdown during the COVID-19 pandemic, writers’ and actors’ strikes in 2023, and devastating wildfires.
In response to the growing competition from other states offering attractive tax incentives, Newsom emphasized the need for California to adapt.
“The world we invented is now competing against us,” he stated during the press conference.
The expanded tax credit initiative is aimed at retaining more film projects within California while highlighting the importance of regions beyond Hollywood.
Assemblymember David Alvarez, a San Diego lawmaker, accentuated the significance of sharing the benefits of these investments throughout the state, saying, “That’s important because historically everybody knows Hollywood.”
Alvarez, alongside state Senator Steve Padilla, has worked on legislation that seeks to enhance tax credit opportunities for independent studios, including the initiative in Chula Vista.
The proposed state bill, AB1138, aims to nearly triple tax credits available for independent films and studios, setting aside approximately $75 million, or 10 percent of the total funds available, specifically for smaller productions.
Additionally, the bill would allow independent film companies to apply for tax credits based on $20 million in eligible expenditures, a substantial increase from the previous cap of $10 million.
Moreover, it seeks to boost the base tax credit rate from 20 percent to 35 percent, with additional incentives for projects based outside the Los Angeles zone.
Alvarez highlighted the bill’s potential impact, noting that it could significantly enhance Chula Vista’s attractiveness to filmmakers.
“This could make Chula Vista a much more attractive place for someone looking to film,” he remarked.
Roberts has also mobilized a coalition of filmmakers outside the traditional Hollywood sphere to advocate for these proposed changes, which he views as a crucial starting point.
The legislation would relax some existing restrictions on soundstages, benefitting the Chula Vista studio, and would expand career pathway programs aimed at training individuals for roles in the film and television sectors.
Furthermore, studios employing graduates from these training programs would be eligible for an additional 2 percent tax credit.
“This aligns perfectly with what the Chula Vista Entertainment Complex aims to achieve through initiatives with high school students,” Alvarez affirmed.
Despite the enthusiasm around the tax credits, some lawmakers have expressed concern regarding the allocation of state funds in light of a tight budget year.
Critics, as reported by CalMatters’ Stella Yue, question the effectiveness of tax credits, suggesting that they may not be the optimal use of taxpayer money, especially considering the potential increase in competition from other states.
State Senator Brian Jones previously voiced skepticism about expanding tax credits, particularly given the need for funding for essential services like higher education.
While acknowledging the value of tax credits, Jones has called for a broader application beyond just the entertainment sector, stating, “Saving entertainment production means protecting middle-class jobs and preserving the California Dream.”
In recent years, various parts of San Diego County have made attempts to draw entertainment businesses to the area.
For instance, there was a proposal in 2019 for a film studio at a former recycling plant in San Elijo Hills, San Marcos, but no updates on that initiative have surfaced, highlighting the difficulties of establishing an entertainment center outside of Hollywood.
Aaron Roberts remains optimistic about the potential for success of the Chula Vista Entertainment Complex, citing a solid coalition of experienced advisors, strong city partnerships, and adequate financial backing.
He aims to negotiate additional incentives with local government bodies to enhance the profitability and competitiveness of his project.
“If we get that triple-stacked (incentive), we will be easily the most competitive place in California and will be able to compete on a national level as well,” Roberts concluded.
As anticipation builds, the studio is scheduled to host an open house on August 2, inviting the public to learn more about the project and its future impact on the local film industry.
image source from：voiceofsandiego
