More stories

  • in

    Democrats Cheer Hollywood Tax Breaks They Once Called ‘Corporate Welfare’

    California politicians once derided a $50 million proposal by Arnold Schwarzenegger. With the support of unions, they’re now strongly backing a $750 million subsidy.Time was running out to pass new California bills in 2005 when a power broker in the State Capitol got a request from the action movie star in the governor’s office. Gov. Arnold Schwarzenegger wanted lawmakers to give Hollywood studios $50 million in tax breaks to help prevent the movie industry from leaving.But Democrats preferred to restore funding that had been cut from schools and support for disabled people. Republicans in the governor’s own party objected to the notion of assisting one industry over others. The effort fell flat, as did similar proposals over the next few years.Among many Democrats, said Fabian Núñez, who was the speaker of the California Assembly at the time, the thinking about Mr. Schwarzenegger’s plan went: “Why does he want to give corporate welfare to rich people? That doesn’t make any sense.”Times have certainly changed.California lawmakers, most of them Democrats, approved a budget on Friday that includes $750 million to subsidize movie and television production, doubling the size of the state’s incentive program while making cuts elsewhere to help close its $12 billion deficit. A bill to make the tax credits available to more types of productions is expected to be approved in the coming days.Some economists object to film subsidies, saying they are a poor financial investment for states, while proponents say they are necessary to slow an exodus of productions. Over the past 10 years, production in Los Angeles has decreased by more than one-third, according to FilmLA data. One Hollywood studio is flying Americans to Ireland to film a game show, and “The Substance,” a best picture nominee, was filmed in France even though it is set in Los Angeles.“Expanding this program will help keep production here at home, generate thousands of good paying jobs and strengthen the vital link between our communities and the state’s iconic film and TV industry,” Gov. Gavin Newsom, a Democrat, said in October when he announced his plan to increase the tax breaks.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Los Angeles Mayor Seeks to Lure Filming Back by Cutting Red Tape

    With film and TV production in Los Angeles down by roughly one-third in recent years, Mayor Karen Bass took steps to make it easier to shoot at top locations.Mayor Karen Bass of Los Angeles said Tuesday that she was taking steps to make filming in the city easier as local, state and federal officials have grown concerned about the exodus of film and television production to other states and nations.The mayor issued an executive directive to streamline city processes, lower the costs of filming in the city and make it easier for productions to shoot at well-known city-owned locations like the Griffith Observatory. The mayor also reaffirmed her support for a massive funding increase for the state’s film tax credit program.“We are going to fight now,” Ms. Bass said at a news conference on Tuesday morning. “While we push for the tax credits to be passed in Sacramento, we need to do what we can today to impact building in Los Angeles.”Though the specific changes detailed in the directive are somewhat technical, the move by Ms. Bass represents a signal of her support for the film industry at a time it faces something of a existential crisis. Filming in the region is down roughly a third in recent years, lured away by massive subsidies in other states and other countries, which often offer cheaper labor. The exodus has left tens of thousands of middle-class union workers without jobs.At the news conference inside SAG-AFTRA’s headquarters, Ms. Bass — flanked by more than a dozen members of the film and television industry — also reiterated her support for a proposal by Gov. Gavin Newsom of California to dramatically increase the size of the state’s tax credit program for film and television to $750 million annually from $330 million.Lawmakers in Sacramento are expected to finalize the state budget next month. Mr. Newsom’s plan appears to have wide support, but exactly how much money lawmakers will ultimately allot to Hollywood at a time the state faces a $12 billion deficit is unclear.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Trump Called for Movie Tariffs After a Meeting With Jon Voight

    The president’s call for tariffs caused confusion in Hollywood, which has seen a steep drop-off in local film and television production.President Trump’s call to impose steep tariffs on movies “produced in Foreign Lands” came after he met at Mar-a-Lago over the weekend with the actor Jon Voight, whom he named a “special ambassador” to Hollywood this year.The president’s social media post on Sunday that called for a 100 percent tariff on films produced outside the United States caused confusion in Hollywood, which has lost a great deal of local film and television production to states and nations that offer rich tax credits and cheaper labor. While few in the industry said that they understood Mr. Trump’s proposal, some worried that tariffs could cause more harm than good and called instead for federal help in the form of tax credits.Mr. Voight and Steven Paul, his longtime manager, met with Mr. Trump over the weekend and shared their plans to increase domestic film production, according to a statement from SP Media Group, Mr. Paul’s firm. They suggested federal tax incentives, changes to the tax code, co-production treaties with other nations and infrastructure subsidies, the statement said.The proposal also included “tariffs in certain limited circumstances,” the statement said, adding that it was under review.Mr. Voight made the rounds of Hollywood last week, meeting with the Motion Picture Association, Hollywood’s top lobbying group; various unions; and the state representatives who are pushing bills to increase state tax credits for the film and television industries. State Senator Ben Allen, a Democrat whose district includes Hollywood, met with the actor to discuss how to increase production in the state, a representative said.Mr. Voight emerged from those meetings with two one-page documents drafted by the M.P.A. One letter encourages lawmakers in Washington to adopt a manufacturing and production incentive to encourage more domestic employment. The other asks Congress to extend a section of the tax code that expires at the end of 2025 and allows certain film and television expenses to be deducted in the year they are incurred.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Where Would Hollywood Find Its Guillotines or Pay Phones Without Them?

    When the Netflix series “Wednesday” needed a guillotine recently, it did not have to venture far. A North Hollywood prop house called History for Hire had one available, standing more than eight feet high with a suitably menacing blade. (The business offers pillories too, but the show wasn’t in the market for any.)The company’s 33,000-square-foot warehouse is like the film and television industry’s treasure-filled attic, crammed with hundreds of thousands of items that help bring the past to life. It has a guitar Timothée Chalamet used in “A Complete Unknown,” luggage from “Titanic,” a black baby carriage from “The Addams Family.”Looking for period detail? You can find different iterations of Wheaties boxes going back to the ’40s, enormous television cameras with rotating lenses from the ’50s, a hair dyer with a long hose that connects to a plastic bonnet from the ’60s, a pay phone from the ’70s and a yellow waterproof Sony Walkman from the ’80s.History for Hire’s 33,000-square-foot warehouse has aisles and aisles of items grouped together by topic or theme.Need a guillotine? They can help.They have a large collection of vintage cameras.History for Hire, which Jim and Pam Elyea have owned for almost four decades, is part of the crucial but often unseen infrastructure that keeps Hollywood churning, and helps make it one of the best places in the world to make film and television.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    When Taxpayers Fund Shows Like ‘Blue Bloods’ and ‘S.N.L.,’ Does It Pay Off?

    Gov. Kathy Hochul of New York has proposed an increase in the film tax credit to stay competitive with New Jersey and other states.New Yorkers — and residents of many other states — have paid more for entertainment in recent years than just their Netflix or Hulu subscriptions.Each New York household has also contributed about $16 in taxes, on average, toward producing the drama series “Billions” since 2017. Over that period, each household has also paid roughly $14.50 in production incentives for “Saturday Night Live” and $4.60 for “The Irishman,” among many other shows and movies.Add it all up, and New York has spent more than $5.5 billion in incentives since 2017, the earliest year for which data is readily available. Now, as a new state budget agreement nears, Gov. Kathy Hochul has said she wants to add $100 million in credits for independent productions that would bring total film subsidies to $800 million a year, almost double the amount from 2022.Other states also pay out tens or hundreds of millions each year in a bidding war for Hollywood productions, under the theory that these tax credits spur the economy. One question for voters and lawmakers is whether a state recoups more than its investment in these movies and shows — or gets back only pennies on the dollar.New York has one of the largest tax credit programs and makes most of its data public, so we totaled its spending to see which productions benefited the most. More

  • in

    There’s a Feeling We’re Not in Hollywood Anymore

    Movies and TV productions are rapidly leaving California to film outside the United States, where labor costs are lower and tax incentives greater. Industry workers are exasperated.It would have been simple to shoot the game show “The Floor” in Los Angeles. The city has many idle studios that could have easily accommodated its large display screen and the midnight-blue tiles that light up beneath contestants.But Fox flies the show’s host, Rob Lowe, and 100 American contestants thousands of miles across the Atlantic Ocean to answer trivia questions about dogs, divas and Disney characters at a studio in Dublin. It makes more financial sense than filming in California.In the past few years, as labor costs have grown after two strikes, producers of reality shows, scrappy indie movies and blockbuster films have increasingly turned away from Los Angeles to filming locations overseas.Those business decisions have considerable consequences for the industry’s thousands of middle-class workers: the camera operators, set decorators and lighting technicians who make movies and television happen. Frustration has reached a boiling point, according to more than two dozen people who make their living in the entertainment industry. They say that nothing short of Hollywood, as we know it, is at stake.“This is an existential crisis — it’s an extinction event,” said Beau Flynn, a producer of big-budget movies like “San Andreas,” which despite being about an earthquake in California was filmed mostly in Australia. “These are real things. I am not a dramatist, even though I’m in the drama field.”Productions have been filmed outside the United States for decades, but rarely has Hollywood work been so bustling overseas at a time when work in Hollywood itself has been so scant. Studios in European countries are bursting at the seams, industry workers say. And film and television production in Los Angeles is down by more than one-third over the past 10 years, according to FilmLA data.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Mercedes’s Most Affordable Sedan Will Be Electric

    The German luxury carmaker said its latest compact sedan solved problems that had kept people from buying electric vehicles.Mercedes-Benz said on Thursday that the latest version of its least expensive sedan would be available first as an all-electric car and then as a hybrid. And the company will no longer sell a gasoline-only version of the car.That’s a big break from how Mercedes and other established carmakers have typically operated. Until recently, most automakers adapted vehicles designed for fossil fuels to be powered by batteries. The Mercedes sedan, the CLA, which the company unveiled in Rome with the rapper will.i.am, is an example of how at least some established carmakers are developing electric cars first, then adapting them for customers who still want a gasoline engine.The CLA, the first of more than two dozen Mercedes vehicles that will use the same basic technology, is a sign that many global carmakers are placing a priority on electric vehicles even as Republicans in the United States try to roll back Biden-era legislation that was intended to promote battery technology.Yet faced with uncertain demand for electric vehicles and unpredictable government policies, Mercedes is tempering its bets by offering hybrids, which pair traditional gasoline engines with relatively small batteries and electric motors.“If the world is not dominant electric by 2030, we as Mercedes-Benz, as an established manufacturer, we cannot walk away from a significant part of our revenues,” Ola Källenius, the chief executive of Mercedes, said in an interview in Rome. “So indeed, you could call it a hedge.”Mercedes did not disclose a price for the new CLA, but said it would be affordable for owners of the current version, which starts at $45,000 in the United States. Eventually some of the components from the car will be used in sport utility vehicles and a station wagon.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    California Governor Proposes $750 Million in Annual Film Tax Credits

    Gov. Gavin Newsom wants to more than double the amount the state offers in incentives, which would make its program one of the nation’s most generous.Responding to pleas from California’s film industry, which has struggled to rebound from labor unrest and industry disruption, Gov. Gavin Newsom on Sunday announced a proposal to more than double the size of the state’s film tax incentive program to $750 million annually.If the proposal is approved by the State Legislature, California would offer more money to entice film productions than any state except Georgia, which provides unlimited tax credits. California’s existing program is capped at $330 million annually. The increase would go into effect on July 1, 2025.“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Mr. Newsom said in a statement. “Expanding this program will help keep production here at home, generate thousands of good-paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”In recent weeks, state economic development officials and entertainment executives in Los Angeles have publicly expressed concern over the persistent slump in film production, begging officials to do more to keep film shoots in the state.Over the past 20 years, states have aggressively wooed Hollywood, offering movie and television productions more than $25 billion in filming incentives, according to a survey by The New York Times. Thirty-eight states offer some form of incentive, including Georgia, which has extended more than $5 billion in film tax credits since 2015, and New York, which has provided at least $7 billion in credits. More