California planning to double film tax credits amid industry decline

From The Center Square

California legislators have unveiled a bill to follow through with the governor’s plan of more than doubling the state’s film and TV production tax credits to $750 million.

The state’s own analysis warns it’s likely the refundable production credits generate only 20 to 50 cents of state revenue for every dollar the state spends, and the increase could stoke a “race to the bottom” among the 38 states that now have such programs.

Industry insiders say the state’s high production costs are to blame for much of the exodus, and experts say the cost of housing is responsible for a significant share of the higher costs.

The bill creates a special carve-out for shooting in Los Angeles, where productions would be able to claim refundable credits for 35% of the cost of production.

California Gov. Gavin Newsom announced his proposal last year and highlighted his goal of expanding the program at an industry event last week.

“California is the entertainment capital of the world – and we’re committed to ensuring we stay that way,” said Newsom. “Fashion and film go hand in hand, helping to express characters, capture eras in time and reflect cultural movements.”

With most states now offering production credits, economic analysis suggests these programs now produce state revenue well below the cost of the credits themselves.

“A recent study from the Los Angeles County Economic Development Corporation found that each $1 of Program 2.0 credit results in $1.07 in new state and local government revenue. This finding, however, is significantly overstated due to the study’s use of implausible assumptions,” wrote the state’s analysts in a 2023 report. “Most importantly, the study assumes that no productions receiving tax credits would have filmed here in the absence of the credit.”

“This is out of line with economic research discussed above which suggests tax credits influence location decisions of only a portion of recipients,” continued the state analysis. “Two studies that better reflect this research finding suggest that each $1 of film credit results in $0.20 to $0.50 of state revenues.”

“Parks and Recreation” stars Rob Lowe and Adam Scott recently shared on Lowe’s podcast how costs are so high their show likely would have been shot in Europe instead.

“It’s cheaper to bring 100 American people to Ireland than to walk across the lot at Fox past the sound stages and do it and do it there,” said Lowe.

“Do you think if we shot ‘Parks’ right now, we would be in Budapest?” asked Scott, who now stars in “Severance.”

“100%,” replied Lowe. “All those other places are offering 40% — forty percent — and then on top of that there’s other stuff that they do, and then that’s not even talking about the union stuff. That’s just tax economics of it all.”

“It’s criminal what California and LA have let happen. It’s criminal,” continued Lowe. “Everybody should be fired.”

According to the Public Policy Institute of California, housing is the single largest expense for California households.

“Across the income spectrum, 35–44% of household expenditures go to covering rent, mortgages, utilities and home maintenance,” wrote PPIC.

The cost of housing due to supply constraints now makes it nearly impossible for creatives to get their start in LA, said M. Nolan Gray, legislative director at housing regulatory reform organization California YIMBY.

“Hollywood depends on Los Angeles being the place where anybody can show up, take a big risk, and pursue their dreams, and that only works if you have a lot of affordable apartments,” said Gray to The Center Square. “We’ve built a Los Angeles where you have to be fabulously wealthy to have stable and decent housing, and as a result a lot of folks either are not coming, or those who are coming need to paid quite a bit higher to make it worth it, and it’s destroying one of California’s most important industries.”

“Anybody who arrived in Hollywood before the 2010s, their story is always, ‘Yeah, I showed up in LA, and I lived in a really, really dirt-cheap apartment with like $10 in my pocket.’ That just doesn’t exist anymore,” continued Gray. “Does the Walt Disney of 2025 not take the train from Kansas City to LA? Almost certainly not. If he goes anywhere, he goes to Atlanta.”

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Natural gas pipeline ownership spreads across 36 First Nations in B.C.

Published on June 14, 2025

Todayville

Chief David Jimmie is president of Stonlasec8 and Chief of Squiala First Nation in B.C. He also chairs the Western Indigenous Pipeline Group. Photo courtesy Western Indigenous Pipeline Group

From the Canadian Energy Centre

Stonlasec8 agreement is Canada’s first federal Indigenous loan guarantee

The first federally backed Indigenous loan guarantee paves the way for increased prosperity for 36 First Nations communities in British Columbia.

In May, Canada Development Investment Corporation (CDEV) announced a $400 million backstop for the consortium to jointly purchase 12.5 per cent ownership of Enbridge’s Westcoast natural gas pipeline system for $712 million.

In the works for two years, the deal redefines long-standing relationships around a pipeline that has been in operation for generations.

“For 65 years, there’s never been an opportunity or a conversation about participating in an asset that’s come through the territory,” said Chief David Jimmie of the Squiala First Nation near Vancouver, B.C.

“We now have an opportunity to have our Nation’s voices heard directly when we have concerns and our partners are willing to listen.”

Jimmie chairs the Stonlasec8 Indigenous Alliance, which represents the communities buying into the Enbridge system.

The name Stonlasec8 reflects the different regions represented in the agreement, he said.

The Westcoast pipeline stretches more than 2,900 kilometres from northeast B.C. near the Alberta border to the Canada-U.S. border near Bellingham, Wash., running through the middle of the province.

It delivers up to 3.6 billion cubic feet per day of natural gas throughout B.C. and the Lower Mainland, Alberta and the U.S. Pacific Northwest.

“While we see the benefits back to communities, we are still reminded of our responsibility to the land, air and water so it is important to think of reinvestment opportunities in alternative energy sources and how we can offset the carbon footprint,” Jimmie said.

He also chairs the Western Indigenous Pipeline Group (WIPG), a coalition of First Nations communities working in partnership with Pembina Pipeline to secure an ownership stake in the newly expanded Trans Mountain pipeline system.

There is overlap between the communities in the two groups, he said.

CDEV vice-president Sébastien Labelle said provincial models such as the Alberta Indigenous Opportunities Corporation (AIOC) and Ontario’s Indigenous Opportunities Financing Program helped bring the federal government’s version of the loan guarantee to life.

“It’s not a new idea. Alberta started it before us, and Ontario,” Labelle said.

“We hired some of the same advisors AIOC hired because we want to make sure we are aligned with the market. We didn’t want to start something completely new.”

Broadly, Jimmie said the Stonlasec8 agreement will provide sustained funding for investments like housing, infrastructure, environmental stewardship and cultural preservation. But it’s up to the individual communities how to spend the ongoing proceeds.

The long-term cash injections from owning equity stakes of major projects can provide benefits that traditional funding agreements with the federal government do not, he said.

Labelle said the goal is to ensure Indigenous communities benefit from projects on their traditional territories.

“There’s a lot of intangible, indirect things that I think are hugely important from an economic perspective,” he said.

“You are improving the relationship with pipeline companies, you are improving social license to do projects like this.”

Jimmie stressed the impact the collaborative atmosphere of the negotiations had on the success of the Stonlasec8 agreement.

“It takes true collaboration to reach a successful partnership, which doesn’t always happen. And from the Nation representation, the sophistication of the group was one of the best I’ve ever worked with.”

Business

Trump: ‘Changes are coming’ to aggressive immigration policy after business complaints

Published on June 12, 2025

Todayville

From The Center Square

By Brett Rowland

“So we’re going to have an order on that pretty soon – we can’t do that to our farmers and leisure too, hotels, we’re going to have to use a lot of common sense on that.”

President Donald Trump said Thursday that changes are coming to his aggressive immigration policies after complaints from farmers and business owners.

“Our great Farmers and people in the Hotel and Leisure business have been stating that our very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace,” Trump wrote in a social media post Thursday morning. “In many cases the Criminals allowed into our Country by the VERY Stupid Biden Open Borders Policy are applying for those jobs. This is not good. We must protect our Farmers, but get the CRIMINALS OUT OF THE USA. Changes are coming!”

Later Thursday, Trump made it clear that businesses need workers.

“Our farmers are being hurt badly. They have very good workers – they’re not citizens, but they’ve turned out to be great. And we’re going to have to do something about that,” the president said.

He added: “We can’t take farmers and take all their people and send them back because they don’t have, maybe, what they’re supposed to have.”

Just how Trump may change his approach to immigration enforcement remains unclear, but he said he wants to help farmers and business owners.

“You go into a farm and you look and people, they’ve been there for 20 or 25 years and they work great and the owner of the farm loves them and you’re supposed to throw them out. You know what happens? They end up hiring the criminals that have come in, the murderers from prisons and everything else,” Trump said.

Trump said changes would be coming soon, but gave little detail on how policies could change.

“So we’re going to have an order on that pretty soon – we can’t do that to our farmers and leisure too, hotels, we’re going to have to use a lot of common sense on that.”

In a later post on Truth Social, Trump said illegal immigration had destroyed American institutions.

“Biden let 21 Million Unvetted, Illegal Aliens flood into the Country from some of the most dangerous and dysfunctional Nations on Earth — Many of them Rapists, Murderers, and Terrorists. This tsunami of Illegals has destroyed Americans’ Public Schools, Hospitals, Parks, Community Resources, and Living Conditions,” the president wrote. “They have stolen American Jobs, consumed BILLIONS OF DOLLARS in Free Welfare, and turned once idyllic Communities, like Springfield, Ohio, into Third World Nightmares.”

He added that deportations would continue: “I campaigned on, and received a Historic Mandate for, the largest Mass Deportation Program in American History. Polling shows overwhelming Public Support for getting the Illegals out, and that is exactly what we will do. As Commander-in-Chief, I will always protect and defend the Heroes of ICE and Border Patrol, whose work has already resulted in the Most Secure Border in American History. Anyone who assaults or attacks an ICE or Border Agent will do hard time in jail. Those who are here illegally should either self deport using the CBP Home App or, ICE will find you and remove you. Saving America is not negotiable!”