Russo Bros’ ‘Gray Man’ and Jordan Peele Project Among 9 Films to Qualify for California Tax Credits

In the latest sign of Hollywood aiming to get back to work in the state of California, nine film projects have qualified for the state’s film and TV tax credit program, including Netflix’s “The Gray Man” from the Russo brothers starring Chris Evans and Ryan Gosling and an untitled Jordan Peele project at Universal. The California Film Commission said “The Gray Man,” a Netflix project directed by the “Avengers: Endgame” directors Joe and Anthony Russo and produced by the Russos’ AGBO, could alone bring in an estimated $102 million in below-the-line wages and other qualified expenditures to the state of California and is the second largest budgeted project, an estimated $200 million, to qualify for the state’s tax credit behind only “Captain Marvel.” The nine films, five being indies costing below $10 million and four being studio films, will generate $284 million in wages and expenditures and employ an estimated 1,340 crew, 342 cast and 14,397 background actors/stand-ins over a combined 374 filming days in California, as well as many post-production jobs and revenue for California artists. “After announcing two relocating TV series earlier this month, our new tax credit program continues to get off to a great start with today’s list of film projects,” California Film Commission executive director Colleen Bell said in a statement. “Production activity is ramping back up in California amid COVID-19, and Program 3.0 is attracting the kind of big budget films that generate a considerable amount of jobs and in-state spending.” These films are the first round of projects selected for California’s Tax Credit Program 3.0, which follows up from a program that began in 2015 but is now in place with new provisions aimed at including a pilot skills training program to help individuals from underserved communities gain access to career opportunities. There are also provisions requiring projects to have a written policy for addressing unlawful harassment and enhanced reporting of above and below-the-line cast and crew employment diversity data. The program launched on July 1. The other studio films to qualify for the tax credit include two Universal projects, including one untitled Jordan Peele project, as well as a sci-fi from Amazon called “Invasion” and starring Riz Ahmed and Octavia Spencer. The indie films include the Jessica Chastain drama “Losing Clementine,” “Nightfall,” and the sports drama “Sweetwater” about the first African American player in the NBA. “We are thrilled to be part of the new Program 3.0 and to be able to base ‘Losing Clementine’ production in California,” Renée Tab, the film’s producer, said in a statement. “We searched other locations, but thanks to the tax credits we can film here at home where the story is set.” Six of these films are planning a significant amount of their production outside the Los Angeles 30-Mile Zone, nearly 40 percent of the 374 filming days slated, which is a key objective of the state’s tax credit program. With these projects included, the tax credit program has generated $140 million in out-of-zone spending across the state from more than 45 different film and TV projects. 81 different projects applied for tax credits during the inaugural period of the new program. The California Film Commission has reserved just over $50 million in tax credit allocation for the nine conditionally approved projects, all of which are subject to change should any applicants withdraw. The next and final application period this fiscal year for feature film tax credits will be held Jan. 25-27, 2021. The next application period for TV projects will take place Sept. 28-30 (for relocating projects) and Oct. 5-7 (for recurring projects).