Steve Hilton, Republican Gubernatorial Candidate, Unveils Expanded Hollywood Plan
Republican gubernatorial candidate Steve Hilton on Wednesday unveiled a plan to revive Hollywood production, including expanded tax credits and public funding for studio upgrades. Hilton, who trails Democrat Xavier Becerra in polls, had previously pledged to eliminate the state's $750 million film incentive cap and […]
Steve Hilton, the Republican challenger for governor of California, on Wednesday presented a plan to revive Hollywood productions that includes increased tax credits and state funding for studio renovations.
Hilton, who is trailing Democrat Xavier Becerra in the polls, has previously promised to eliminate the state's $750 million cap on film incentives and include actors' salaries and other "above-the-line" expenses in the program. Related Stories 'Scrubs' Showrunner Reveals Season 2 Premiere: Does Dr. Cox Live, and Will We Finally See JD and Baby Elliot? Eric Weinberg, author of "Scrubs", is on trial for raping and sexually assaulting seven women.
In a detailed outline shared with Variety, Hilton provided more details, as well as an extensive proposal to support the renovation of the soundstage. Popular in Variety
"No governor can change every decision made by an entertainment company, nor should a governor attempt to manage private businesses — or indeed the structure of a changing industry," the plan states. But California's government is responsible for the costs and bureaucracy it imposes on people trying to work here, and its response to competitive pressures from other places.
Becerra has published his position paper for the entertainment industry, but is shorter on details. He declined to say whether he would eliminate the state's tax incentive cap, instead saying he would wait to see what proposals come from the state Legislature. Both candidates have acknowledged the dramatic decline in manufacturing jobs over the past four years — about 52,000 statewide — and promised to take steps to fix it.
Both also support a federal film incentive introduced in Congress last month that would provide a 20 percent tax credit on all U.S. labor costs.
In its application, Hilton said it would offer a 40 percent state tax credit for manufacturing. He also floated the idea of a 50 percent increase over a five-year period. By removing the $750 million cap, Hilton is also proposing to automate California credits, bringing stability and predictability to productions, albeit at an undisclosed cost.
"Steve will replace narrow application windows with continuous roll approvals," the plan states, adding that productions must receive a response within 30 days.
The proposal also includes a five-year sales tax exemption for building materials needed to build the studio, as well as state bond financing for the purchase and renovation of the studio.
Gov. Gavin Newsom approved a $150 million incentive to boost soundstage construction in 2021. The budget has since expired and there has been no discussion of additional money being allocated to it. According to FilmLA's latest report, Los Angeles soundstages are only 62 percent occupied, although new stages continue to open.
Hilton also pledges to include commercials, documentaries and reality TV - all currently excluded from eligibility.