Suits: LA Relocates To California From Vancouver With $12 Million In Tax Credits

California’s Tax Credit Program Attracts Major Productions Back to Hollywood

 

California's competitive tax incentive programs continue to lure major film and television productions back to the state, with the latest win being the spinoff series Suits: LA. Originally intended to be shot in Vancouver, the production pivoted to Los Angeles after being awarded nearly $12 million in tax credits, thanks to a program aimed at boosting soundstage construction and keeping jobs in California.

The California Film Commission announced the move on Tuesday, highlighting that Suits: LA is just one of 19 projects benefiting from the state’s tax incentive program this year. The initiative, which has allocated a total of $51.6 million in incentives, is expected to generate significant employment opportunities and economic impact, with projected spending of over $284 million in California.

California’s Efforts to Reclaim Hollywood Productions

In recent years, competing states and countries have stepped up their game, offering more attractive tax credits to attract film and TV productions. California, known as the home of Hollywood, has been battling to keep productions within its borders, especially as neighboring states and international locations provide increasingly appealing offers.

States like Illinois have expanded their tax credit programs, and countries like Japan have introduced aggressive incentive schemes, including reimbursement of up to 50 percent of qualifying expenditures. These programs often come with fewer restrictions, making them highly attractive to production companies looking to maximize their budgets.

However, California’s new $150 million soundstage construction program, passed in 2021, has proven effective in drawing back productions that would have otherwise filmed elsewhere. This initiative not only aims to create more filming space but also to stimulate the local economy by retaining and creating jobs in the state’s entertainment industry.

Economic Impact and Job Creation

Suits: LA is expected to spend $25 million in qualified wages and create over 2,600 jobs during its 96 days of shooting in Los Angeles. The series, from Universal Content Productions LLC, marks a significant boost for the local economy, particularly as the industry rebounds from a challenging year marked by strikes from actors and writers and cutbacks in studio spending.

Colleen Bell, executive director of the California Film Commission, emphasized the importance of these incentives, saying, “Keeping jobs here in California and bringing jobs back to California have always been top priorities for our state. We’re not only helping people get back to work but also keeping major projects like Suits: LA — which was planning to film elsewhere — right here in Los Angeles where it belongs. This is crucial for our economy and the well-being of our crew that call California home.”

A Broader Wave of Productions Benefiting from California’s Incentives

In addition to Suits: LA, other high-profile projects receiving California tax credits include a Janis Joplin biopic starring Shailene Woodley, who is also set to executive produce the film. The biopic, one of 15 independent films benefiting from the incentives, will receive a $2.5 million tax credit on nearly $10 million in production expenditures.

Among the three major feature films granted funding, Community – The Movie is a standout. The film will reunite the beloved cast of the TV series and is slated to stream on Peacock. Other titles receiving credits include Killing Gawker, from Artist Equity, which will see Ben Affleck potentially taking on the role of Hulk Hogan, with acclaimed director Gus Van Sant in talks to helm the project.

These productions are expected to employ thousands of crew members, cast members, and background performers, providing much-needed opportunities in California’s recovering entertainment sector. The state’s tax credit program not only serves as a financial incentive but also as a critical tool in re-establishing California as the leading destination for film and TV production.

California’s Strategic Move to Boost Local Production

The relocation of Suits: LA and other projects back to California highlights the ongoing tug-of-war between competing tax incentive programs globally. For California, the strategy is clear: invest in infrastructure, offer competitive incentives, and ensure that the Golden State remains synonymous with Hollywood magic.

Aaron Korsh, the showrunner for Suits: LA, expressed his enthusiasm for the move, stating, “Being able to shoot here will be a huge part of the show’s authenticity.” Korsh highlighted that the decision to film in Los Angeles would provide vital employment opportunities for the local cast and crew, who have been eagerly waiting for work at home.

As the battle for Hollywood money intensifies, California’s commitment to nurturing its entertainment industry and supporting local talent through strategic investments is a powerful draw. The success of these initiatives could pave the way for even more productions to find their home in the state, ensuring that California remains at the heart of the film and TV world.

Source: Hollywood Reporter

Photo Credit: NBC

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