We’ve already posted an article pointing to the passage of Bill 1839, which supposedly has passed both houses of the California legislature. This bill allots some $400 million per year tax credit abatement for awarding film and TV productions that stay in California. The bill is said to only require that Gov. Jerry Brown signs it to become law. The bill is nearly the same size yearly tax abatement that New York awards. The Empire State will now have to up its competitive spirit – or heck, throw more of our tax money around – to address a more aggressive stance from Hollywood.
Turns out that that the lawmakers aren’t finished though. Variety reports that a resolution will offered to Bill 1839 in the California state legislature to create a mechanism that would place a tariff on movies that do their VFX outside the Golden State. Is our local Post NY Alliance in trouble?
This won’t have the power of the tax abatement bill that is supposedly soon to pass. Tariffs, meanwhile, are a blunt instrument that are increasingly out of favor in our ever more interconnected world.
But it does show that the legislature is listening to the complaints of the VFX industry workers, a group which continues to lose jobs to countries offering lucrative tax arrangements to the studios. The Variety article by Ted Johnson notes that Sony Imageworks has announced it will be moving its whole facility to Vancouver. In New York, the PNYA (Post NY Alliance) has been credited for helping push through the state legislature tax abatements that have greatly increased the work available in the local VFX industry.
California VFX workers might not get want they want at this point, but it does show that their efforts to catch the attention of legislatures is finally taking hold.