The fires that ravaged Los Angeles County earlier this year have supercharged calls to bring more production back to Southern California after a period of notable decline.
Much of this advocacy has played out on social media and in the press. On Instagram industry figures like cinematographer and director Rachel Morrison (Mudbound) and star Vin Diesel (Fast & Furious) have argued that an increase in local shoots can aid the fire recovery efforts. Meanwhile, Keanu Reeves, Kevin Bacon and Noah Wyle are backing the #StayinLA initiative, which has captured the attention of news outlets as it advocates for California to uncap its entertainment tax incentive program for productions in L.A. County and for studios and streamers to promise at least a 10 percent increase in local productions.
But how are behind-the-scenes efforts to bring more film and television shoots back to Hollywood going? As international president of the prominent crew union IATSE, Matthew Loeb has a unique lens on the situation. His more than 170,000-member union is backing the California governor’s proposal to significantly raise the state’s film and television tax credit cap this year, from $330 million to $750 million. It’s also, he reveals in an interview with The Hollywood Reporter, considering pushing for a federal production incentive to keep more shoots in the U.S.
On Saturday Loeb attended the awards ceremony for one of IATSE’s Locals — the Make-Up Artists & Hair Stylists Guild — to encourage union members to donate to the union’s foundation for disaster relief; nearly 300 IATSE members lost homes in the L.A. blazes, 16 of which were members of the makeup artist and hairstylist’s guild. While there, he also discussed with THR the state of the California governor’s proposal, the thinking behind the potential federal effort and how the Trump administration plays into it all.
What was the immediate impact of the L.A. fires on IATSE members overall?
Roughly 300 houses of our members were lost. That’s a problem that’s going to last a while. The wake of the disaster is going to affect people financially, psychologically. It’s going to be rough for a while going forward, but our folks are safe. That’s — knock on wood — the most important thing. And we’ll continue to support them as the needs arise that were caused by the disaster.
Beyond the direct impact that’s happening now, do you predict any longer-term consequences, due to effects like a potential rise in rents?
I think that there’s got to be some kind of oversight and regulation. You can’t allow the gouging to go on and you can’t create an environment that chases people away who have made their lives and their communities here, but there are going to be challenges. [L.A.] is very expensive to begin with and now the pickings are slimmer.
IATSE has been a champion of the California Governor’s proposal to more than double the film and TV tax credit and the #StayInLA initiative. How is the union advocating for those two efforts right now?
Our political folks are up in Sacramento and they’re working with the legislators there. I was just, probably three weeks ago, in Washington, D.C. because it isn’t just the states competing with each other, it’s the global competition that is causing a lot of the dearth of work.
Is IATSE going to be supporting a federal tax incentive for production?
I don’t know what form it’s going to take. It could be tax, it could be trade. There are a lot of different levers and a menu of things we need to look at, but it has to cause work to stay here and create and provide jobs. And it can’t just be a number that can be held out for other countries that want to compete for them to beat, a race to the bottom.
How does trade interact with this? Would a tariff be on the table?
We need to talk to trade experts to see what the best methods are and I don’t think a punitive bent on a tariff will get full support from the industry. So I think it’s important that we look at what the options are, which things are likely to garner support and at the same time will benefit — and this is going to be the trick — the business at large here. [Hollywood] was a uniquely American industry and, oddly, it’s in the sweet spot of what you’re hearing out of Washington at the moment with lots of other things.
I am curious how you think the Trump administration would impact any potential attempt for a federal tax incentive.
Look, I don’t know. I don’t think anybody can tell you what he’s going to do or who’s going to advise him and who he’ll listen to about this. So I think we have to find our industry allies, find a way that we can get on the same page: labor, management, the vendors, the hotels, all the folks who are suffering from the loss of work here. And it’s not going to be easy. The interests don’t always align and if it’s just [about] dollars, it’s going to be tough. I don’t think anybody’s going to do it out of charity or, frankly, out of patriotism. Everybody would love that — it’s our business, keep it here — but dollars are going to play a big part.
To go back to the California governor’s proposal, are you advocating for particular changes to the existing program, like including above-the-line costs, unscripted projects, or other modifications?
I know there are discussions about that going on. My understanding is that at least when it was proposed, it was meant to just overlay a new number onto the system that exists now. But obviously if it applied to more people, it would save money and entice production. I think we have to operate in the art of the possible. California has a lot of obligations and money is tight.
On the California tax incentive, will you be advocating for an increase to the $750 million that was proposed?
Well, I mean, the more the merrier. I don’t know if [legislators] are going to get there with the challenges that they have, and there’s a pulling on them from a lot of different directions for a limited amount of money and so it has to really benefit the state. Those multipliers have to be explained thoroughly, how the ancillary businesses benefit [from production] and bring the economy back. For me, [in terms of] the recovery from the fires, you can put a lot of money in charities and give people dollars to house themselves in the near term, but in the long term they need work and that’s got to be the focus.
The #StayinLA initiative calls for studios and streamers to dedicate at least 10 percent more production to L.A. over the next three years. Has IATSE been lobbying or meeting with the studios to support that effort?
Yeah, look, I wasn’t part of how that number got picked and [determining] what is a reasonable threshold. I think we have to be in discussions and be thoughtful. It would be great to have a guarantee and a baseline to know that’s how much production you’re going to get. But all the other factors are going to be in play before any of those decisions are made. I don’t believe that there’s any way to compel that to happen other than saying, “Please do it.” And as I said before, it’s not going to be charity. It’s got to make business sense.
Is there anything else you want to add?
I think that the jobs are crucial. The support for the membership is crucial. And while I said it’s not going to be about charity or patriotism, it could be about pride. Pride in the industry, pride in the cultural aspects of it, and hopefully the folks who decide where pictures are set will bring some of that to the table, too.
This interview has been edited for length and clarity.