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California lawmakers aim to apply a film and TV tax credit federally

California’s economy might see a boost from the state’s expanded film tax credits, but local lawmakers say it’s not enough.

Despite Gov. Gavin Newsom authorizing a $750-million film and TV tax credit program last summer, the impending merger between Paramount and Warner Bros., and the projected budget cuts that are expected to follow, has reignited fears about Hollywood jobs and U.S.-based productions.

“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” U.S. Sen. Adam Schiff (D-Calif.) said during a news conference Friday morning.

“We must act, and the urgency could not be greater,” he said. He revealed he is working on a bipartisan federal film incentive proposal that would be competitive with what other countries are offering for film productions.

He said the program isn’t about Hollywood’s stars; it’s about the jobs that productions create, including roles for set designers, carpenters and lighting crews.

“These are the people who make that magic happen. We want to keep those jobs here, and many of us are deeply concerned about what this potential merger will do to those jobs,” Schiff said.

Earlier this week, the California Film Commission revealed that 16 shows had recently received tax credits for filming in the state. The projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. Schiff said the state tax credit has generated more than $29.1 billion in motion picture production wages and supported more than 220,000 jobs.

Even as shows start to see gains in Southern California, Los Angeles film activity was still down 13.2% from July through September when compared with the same period in 2024. The downward trend extends the loss of 42,000 jobs in L.A. between 2022 and 2024, the continued suffering of local sound stages and the offshoring of productions internationally.

“Federal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage,” said Matthew Loeb, the president of the International Alliance of Theatrical Stage Employees. “A globally competitive labor-based and tax incentive is. For us, production that supplements state incentives is essential to return and maintain film and television jobs in America.”

HBO Max’s medical drama “The Pitt” is filmed at one of Warner Bros. soundstages in Burbank and it’s one of the shows benefiting from California’s tax incentive.

Noah Wyle, the star and executive producer of the show, said during the news conference that “it’s really hard to shoot a TV show in Los Angeles, and it’s really expensive, prohibitively” — so adopting an economic model that allows productions to take full advantage of the California tax incentive was essential to “The Pitt” filming in L.A.

“As an Angeleno with generational roots to this city and as a seasoned member of its creative community, advocacy for Los Angeles-based production is something that is very close to my heart,” Wyle said.

“‘The Pitt’ has blessedly become proof of that speculative concept. I’m happy to report we’ll commence shooting season three this summer, and that a rising tide has indeed lifted all boats in season one under the 3.0 tax program,” he added.

The show received a 20% tax rebate on many above-the-line costs. The budget for one episode was approximately $6.6 million, so the show received a rebate of about $760,000 per episode. By the end of season one, the production was able to save over $11 million. Wyle estimated that the first season of “The Pitt” contributed around $125 million toward California’s gross domestic product.

Rep. Laura Friedman (D-Glendale), who is working with Schiff on production tax incentives, said that because California is already seeing benefits from the current program, there’s no reason it wouldn’t work nationally. Friedman added that tax incentives are a common practice among many industries in the U.S.

“Hollywood is not asking for special treatment. Whether it is computer chips, the energy sector or pharmaceuticals, this is something that is standard in the United States,” said Friedman. “In terms of our nation, Hollywood and its ability to tell the story of America, it is something worth saving.”

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Man in pipe bomb case argues Trump’s Jan. 6 riot pardons apply to him

President Trump’s sweeping act of clemency for rioters who stormed the U.S. Capitol also should apply to a man charged with planting pipe bombs near the national headquarters of the Democratic and Republican parties on the eve of the Jan. 6, 2021, riot, the suspect’s attorneys argue in a bid to get his case dismissed.

In a court filing Monday, defense attorneys assert that Trump’s blanket pardons extend to the charges against Brian J. Cole Jr. because his alleged conduct on Jan. 5, 2021, is “inextricably tethered” to what happened at the Capitol the next day. They’re asking U.S. District Judge Amir Ali to throw out the case before trial.

Justice Department prosecutors didn’t immediately respond in writing to the defense’s request. In a previous court filing, prosecutors said Cole, under questioning by FBI agents, denied that his actions were related to the Jan. 6 proceedings at the Capitol.

On his first day back in the White House last year, Trump pardoned, commuted prison sentences and ordered the dismissal of all 1,500-plus people charged in the attack by a mob of his supporters.

Nearly a year later, Cole was arrested on charges that he placed two pipe bombs outside both the Republican and the Democratic national committees’ headquarters in Washington the night before the riot. The devices didn’t detonate before law enforcement officers discovered them Jan. 6.

Cole’s attorneys said the Justice Department’s framing of the case has explicitly linked Cole’s alleged conduct on Jan. 5 to the events of Jan. 6, when rioters disrupted the joint session of Congress for certifying Joe Biden’s electoral victory over Trump.

“That is not happenstance sequencing in time. It is the government’s theory of Mr. Cole’s alleged motive and context,” defense lawyers wrote. “According to the government, the timing was chosen because of what was scheduled to occur at the Capitol on January 6.”

They also argued that prosecutors’ theory of a possible motive places Cole’s alleged conduct “in the same political controversy that animated the January 6 crowd.”

In court filings, prosecutors have said that Cole confessed to investigators after his Dec. 4 arrest. He told FBI agents that he felt “bewildered” by conspiracy theories related to the 2020 presidential election and “something just snapped” after “watching everything, just everything getting worse,” prosecutors said.

Cole has remained jailed since his arrest. His attorneys have appealed Ali’s refusal to order Cole’s pretrial release from custody. The judge hasn’t set a trial date yet.

Cole, 30, of Woodbridge, Virginia, has been diagnosed with autism and obsessive-compulsive disorder. His attorneys say he has no criminal record.

Authorities said they used phone records and other evidence to identify him as a suspect in a crime that confounded the FBI for more than four years.

Kunzelman writes for the Associated Press.

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