CA Film & Production Industry is Critical Driver of Economy
The fires, pandemic and economic conditions have severely impacted the film & production industry
Monday, April 28, 2025 [English translation | link to original]
It’s a little-known fact that the TV and film production industry has been a long-term source of high-quality employment opportunities in Los Angeles for Latinos and Latinas like me. In my current role at Quixote, a leading provider of sound stages and production services for the entertainment industry, I oversee all services operations, which support a wide variety of productions. I know firsthand how California’s vibrant film and production industry uplifts not only the state’s economy but also our community.
But we are at a pivotal moment for the entertainment industry in Los Angeles. The fires, the pandemic, and larger economic conditions have hit the film and production industry especially hard, and these negative impacts are certainly not limited to movie stars and Hollywood studios. From camera specialists and caterers to custodial staff and construction crews, countless Latino business leaders like me thrive because of the opportunities created by local film and television production. That’s why, now more than ever, I’m urging state leaders to expand the film tax credit—an essential tool that keeps California competitive and fosters equitable economic growth—while helping thousands of Latino families get back on their feet.
At Quixote, the majority of our business comes from supplying film crews working on independent productions, major blockbusters and anything in between. These jobs are not just one-time gigs; they build relationships and create steady revenue streams. When production slows, it’s not just actors and directors who feel the pinch—it’s the thousands of support employees and adjacent businesses who are left scrambling to make ends meet.
For many Latino-owned and operated small businesses, the film industry is a lifeline, and our community is deeply integrated into the industry’s workforce. At Quixote, we employ 430 employees, of which over 70% are people of color (this includes ~200 Teamsters Local 399 union workers). This team provides essential services that bring productions to life— by manufacturing trailers and equipment necessary for cast and crew, maintaining and setting up equipment on set, as well as keeping facilities spotless. Their business helps keep our own doors open, provides jobs for our neighbors and allows us to invest in our community.
California has long been the heart of the entertainment industry, but in recent years, the state has faced increasing competition from places like Georgia and New York, all of which offer attractive tax incentives for film production. When productions leave California to chase these incentives, businesses like mine suffer the consequences. The film tax credit is not just about keeping Hollywood glamour alive; it’s about sustaining the ecosystem of hardworking individuals and businesses that rely on this industry to make a living.
Gov. Gavin Newsom’s historic proposal to expand the film tax credit to $750 million, more than double the current amount of $330 million, is a smart and forward-thinking solution. By providing incentives to keep productions in California, the state can ensure that billions of dollars in economic activity remain here. According to the California Film Commission, the film and television tax credit has already generated significant returns, creating thousands of jobs and boosting local economies. This historic investment would allow California to do more to remain competitive as other states ramp up their incentives.
An expanded tax credit would not only attract more productions but also help create a more inclusive industry. Our community has built a strong foothold in the industry, both on and off-screen. Strengthening the industry in California means more opportunities for below the line workers and businesses to grow and prosper, laying the groundwork for greater representation and opportunity across the board.
Critics may argue that tax credits amount to corporate giveaways, but this view ignores the benefits to those of us who feed our families with what we earn providing services to film and TV productions. When productions come to town, they spend at small businesses and bring jobs to our community—not just for Hollywood elites but for everyday workers.
The entertainment industry is part of California’s identity, and Latinos are an essential part of its success. It’s an industry that celebrates creativity, fosters innovation, and provides economic opportunities for people from all walks of life. I applaud Gov. Newsom’s move to expand the tax credit and help majority-Latino businesses like mine succeed.
Crystal Osejo is Senior Vice President, Studio Operations, Services, at Quixote