CA Postproduction Tax Credit Bill: “Let's Not Miss This Moment"
“If this bill fails, we will all lose,” Assemblymember Nick Schultz said at a CAPA meeting. “There are so many jobs that won’t be here in a year."
By Carolyn Giardina
An urgency to get California postproduction tax credit bill AB 2319 passed in Sacramento this year was conveyed Friday at a town hall meeting in Burbank, organized by California Post Alliance (CAPA), sponsor of the bill. “If this bill fails we will all lose,” said State Assemblymember Nick Schultz (District 44), author of the bill, who joined CAPA members in warning, “There are so many jobs that won’t be here in a year’s time.”
Schultz is asking the State for $100 million annually to incentivize productions to post in California, which has been bleeding postproduction jobs.
CAPA and Schultz explained the path for AB 2319, which has been moving through the State Assembly and currently sits with the Appropriations Committee, where a deadline to vote on the bill is May 15. If it passes, the bill would go to the Assembly Floor for a vote on May 29. If it passes in the Assembly, the bill would then have to pass in several Senate Committees en route to the Senate Floor, which would take its vote in late August. If it passes there, it would then go to Governor Newson, and if signed, the bill would become law on Jan. 1. They also explained that there are opportunities to add or clarify language in the bill until the Senate floor vote. If amended after the Senate Floor vote, it would be returned to the Assembly.
“We cannot let the perfect be the enemy of the good. We absolutely have to have a bill passed and signed into law by Governor Newsom this year and it should be as close to perfect as we can get it,” Schultz said to this last point.
“When you introduce [a bill], and especially in the first house, it is never the end product,” he said of the amendment process, noting that legislators and the community have the opportunity to make suggestions and amendments are made. “Every committee, every stop along the way, there is an opportunity to add language, clarify the intent of the bill, either add or take out requirements that might be counterproductive to the end goal of keeping postproduction here.
“At every step along the way, we can and should and will keep those conversations going with every new version of the bill,” he added. “We’re going to continue to refine it and make it better.”
During the meeting, CAPA president Marielle Abaunza, who is executive vp of business development at Signature Post, announced that the Television Academy has endorsed the bill. “Having the Television Academy stand alongside the California Post Alliance in support of AB 2319 sends a powerful message. Preserving jobs for California’s postproduction community is essential to both the future and the legacy of television,” she said.
Abaunza urged those in attendance to write letters of support for the bill to their representatives, and to become members and donate to CAPA, a 501(c)(6) nonprofit, to reach needed funding to support AB 2319. This has already included hiring a lobbyist and economist to provide needed figures on the impact of postproduction on the California economy. CAPA acknowledged and thanked supporters, led by Platinum members Encompass, Lionsgate and Trevanna Post, and Gold member MTI Film. More funding is needed, she said.
CAPA vp Jennifer Freed, founder of Trevanna Post and CAPA’s treasurer, stated that membership in Motion Picture Editors Guild (IATSE Local 700) is “dramatically down” and vendors are operating on “razor-thin margins.” She urged, “Lets not miss this moment. Let’s get this bill passed.”
An estimated 200 guests attended Friday’s town hall meeting, with many Local 700 members in attendance wearing “Post Proud” buttons, a part of its Political Engagement Committee’s campaign to rally bill support, which has also included a letter writing campaign that is underway.
Last month during an April 6 press conference to champion the bill, Editors Guild president F. Hudson Miller voiced “strong support” for a standalone postproduction tax credit but also urged that the bill be amended. “It needs clear, strong labor standards,” he said. Schultz has been working with the Guild and recently spoke at its April 25 “Spring into Action” member meeting. Meanwhile at Friday’s meeting, Schultz additionally took a number of the questions and suggestions from those in the VFX community.
“No piece of legislation is perfect. There are always refinements that need to be made,” noted Schultz. “We are going to try to get this done right. And if it’s anything but perfect, we’ll continue to refine it.” He pledged that should it not pass this year, “I will run this bill every year until it does. This bill has to pass.”
AB 2319 differs from California’s film tax credit, which requires 75% of principal photography to have been shot in the state of California. Instead, AB 2319 aims to incentivize projects to post in the State, even if they filmed elsewhere or were unable to qualify for the current tax incentive bill. Supporters say they want to “level the playing field” by targeting post business that is not evaporating, but rather being lured out of the Golden State. The current version of the bill includes a 35% tax credit if 75% of a production’s editorial post budget is spent in the State, or if $1 million is spent in the State.
“We can’t afford to wait another session. This bill has to pass this year,” Abaunza summed up. “We need members. … and we also need voices.”
The Creative + Tech Orbit’s coverage of AB 2319, with more information about the bill and its potential impact on California, can be found in prior articles, including here and in this story about CAPA’s launch.