Los Angeles Times

Amazon’s ‘Citadel’ to get large tax break

- By Anousha Sakoui

Amazon Studios’ bigbudget spy thriller “Citadel” is set to become the highestspe­nding TV production to relocate to California in the history of the state’s film and TV tax incentive program, as the technology behemoth shifts production from Britain for the show’s second season.

The series is one of seven shows — two relocating series and five new series — that qualified for the latest round of film and television tax credits from the state. Spending by these production­s is expected to total an estimated $527 million in the region, the California Film Commission said Monday.

Amazon will get a $25-million tax credit for moving its show to the state, where it is projected to spend about $119 million in qualified expenditur­es, the commission said.

“Citadel,” which stars Priyanka Chopra Jonas, is the largest of a total of 33 TV series that have relocated from other states and countries since the expanded tax credit program was launched in 2015. The incentive plan is part of an effort to stop production­s from fleeing the state in search of lucrative tax incentives elsewhere.

“We’re thrilled that our tax credit program is welcoming such a diverse range of TV projects in terms of storytelli­ng, budget and employment,” California Film Commission Executive Director Colleen Bell said.

Paramount Global’s BET drama “True to the Game” is among the new shows that were also accepted into the tax credit program. The show’s producers are planning to spend $11 million in qualified expenditur­es in the state during its first season.

Netflix’s “Forever” will receive a $12-million credit and Walt Disney Co.’s 20th Century Studios will get $12 million for its new show “Paradise City.”

Amazon Studios will garner an additional $10-million tax credit for a new untitled series that will film in the state. Paramount Global is receiving $14 million for a new untitled series.

Besides “Citadel,” another relocating TV series is HBO’s second season of “Wondermill,” which is relocating to California from Oregon and will receive $4 million from the state in the form of a tax credit.

The state spends $330 million per year to dissuade Hollywood production­s, one of its signature economic engines, from filming in other regions. Under the program, producers can recover 20% to 25% of their spending on qualified costs, such as money spent building sets and hiring crews, and can then use the credits to offset state taxes.

California missed out on nearly $8 billion in economic activity as a result of socalled runaway production, according to a 2022 estimate from the Los Angeles County Economic Developmen­t Corp. for the Motion Picture Assn.

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