Revitalizing L.A.: The Case for Expanding California’s Tax Incentives to Restore the Entertainment Capital of the World

Los Angeles is truly special. Randy Newman captured that spirit perfectly. For over a century, L.A. has been the heart of entertainment, a hub for dreamers and creators. But lately, our beloved city has faced harsh challenges.

As someone in the industry, I have witnessed the incredible creativity and strength of our community. Recently, I felt a deep sense of helplessness while shooting in Ireland. My family back home was in danger due to wildfires. Many had to evacuate, uncertain if their homes would survive. Thankfully, ours did, but many close friends lost everything. Communities were left in ruins, taking with them dreams and hard work.

Experiencing this destruction is a pain I wouldn’t wish on my worst enemy. It goes beyond just rebuilding homes; it requires a massive response to help our city heal.

In a past life, I was set to work in finance on Wall Street, but I chose to follow my passion for acting instead. My parents still shake their heads at that decision! While I left finance behind, the importance of a healthy economy remains with me. Getting L.A. back on its feet won’t be easy, but one vital step is clear: we need to revive the entertainment industry.

L.A. is home to many workers, from shop owners to teachers, all vital to our community. Yet, our economy relies heavily on Hollywood. To bring productions back and keep our city thriving, we must push for stronger tax incentives for films and TV shows.

Currently, California offers a 25% tax incentive, capped at $350 million per year. There’s a proposed increase to $750 million, but it still falls short. Our competition — places like New Jersey, New York, and even countries like Canada and Australia — offers 30% to 40% incentives without caps. As studios chase the best deals, L.A. loses out. Restaurants close, small businesses fail, and families leave.

We understand that entertainment companies prioritize their profits. But we need our state government to step up and offer incentives that make it financially viable to stay here. If we can make it worthwhile, we could bring back many who call L.A. home.

Boosting the tax incentive to 40% could significantly impact our local economy. For every dollar spent on production tax credits, more money flows into our community, benefiting local businesses and public services.

Furthermore, the money earned here should fund our local schools and infrastructure, instead of going overseas. Productions should contribute to California, where the stories originally came to life.

Beyond wages, production also drives spending at local hotels, restaurants, and shops. The global film industry has always found inspiration here. Now we ask them to return the favor, to support us in our time of need.

We face a monumental task ahead to rebuild our city. It will take billions to restore homes and neighborhoods, but we need to invest in hope as well. Jobs can provide that hope.

Los Angeles has faced many challenges — from wildfires to a pandemic. It feels like rock bottom for Hollywood. However, we know that many great stories begin at the lowest points. A 40% tax incentive could spark the revival we so desperately need.

PJ Byrne is an actor known for his roles in various films and TV series. He’s currently working on the USA Network drama series “John Grisham’s The Rainmaker” and has appeared in films like “A Complete Unknown” and “The Wolf of Wall Street.”