As if demand wasn’t enough reason to build production and soundstage facilities in Los Angeles, the state is expanding its tax credit program to encourage more development.
Gov. Gavin Newsom signed into law a measure to pump another $330 million into California’s Film and Television Tax Credit Program, according to the Los Angeles Daily News.
He signed the legislation at Hudson Pacific Properties’ Sunset Gower Studios in Hollywood. HPP last fall secured city approval to add 500,000 square feet of production space to the 16-acre property.
The measure Newsom signed — Senate Bill 144 — includes a $180 million increase in tax incentives over two years and a one time $150 million incentive for soundstage development.
California established the program in 2009, and state officials claim it has supported $18 billion in production spending.
Since the start of the pandemic, the program has provided $335 million in tax incentives for 48 productions, according to the report.
Investors like Hackman Capital Partners and HPP have amassed large portfolios of production studios in L.A. and lately institutional investors have moved into the space.
Blackstone Group bought a 49 percent stake in HPP’s Hollywood portfolio last summer.
[LADN] — Dennis Lynch