Just like other projects Chula Vista has slated for its future, the Chula Vista Entertainment Complex has an ambitious goal: to become Southern California’s newest film production hub. Its pitch to production companies is simple: use our facility and take advantage of a revamped state tax credit p rogram that makes shooting outside Los Angeles far more lucrative than it’s ever been. Coupled with similar tax incentives in the works by both Chula Vista and the county, the Complex could be among the most competitive places for film production in the state, according to state and Chula Vista officials. The complex will occupy the top two floors of the five-story Millenia Library building in the city’s Otay Ranch area. The third floor will house creative studios for podcasts, photography and content creation, while the fourth floor will contain post-production facilities including edit bays, audio recording studios and Dolby mixing rooms. Across the street, the project plans to build approximately 180,000 to 200,000 square feet of virtual production-capable sound stages on an eight-acre lot, with the first phase encompassing about 90,000 square feet and four studios. The project’s success hinges in part on California’s reformed Film Television Tax Credit Program, which state Sen. Steve Padilla and Assemblymember David Alvarez helped shape. “My focus was ensuring the program worked not just for large studios in Los Angeles, but for regions like San Diego County that have talent, locations, and growing infrastructure but were previously locked out of meaningful participation,” Alvarez said in an email. How it works A tax credit is a dollar-for-dollar reduction in the amount of income tax owed. Unlike tax deductions, which reduce taxable income, tax credits directly decrease tax liability. Under the updated program, Alvarez said, the base tax credit increased from 20% to 35%, with additional uplifts for productions filming outside the Los Angeles zone: 10% for out-of-zone labor and 5% for out-of-zone expenses. “That means productions in places like San Diego or Chula Vista can qualify for 40-45% in total credits, making California competitive again with states like New York and New Mexico,” Alvarez said. Chula Vista Entertainment Complex founder Aaron Roberts said film production has been steadily leaving Hollywood as other states and cities have created their own tax incentive programs, like Atlanta and New Jersey. He said he hopes to leverage the tax incentives and their proximity to L.A. to draw business. “Part of the battle, so to speak, used to be convincing companies to leave L.A.,” he said. “So our proximity to L.A. is actually one of our major competitive advantages, because the industry has already fractured and is used to doing production outside of L.A.” For example The program is performance-based, meaning productions must apply, qualify and spend money in California on local labor, vendors, rentals and facilities before receiving a tax credit. For production companies, Alvarez said, “the savings can be millions of dollars per project, often making the difference in whether a project films in California at all.” For example, a production company that films in Chula Vista and spends $10 million on qualifying California expenses — such as hiring local crew, renting equipment from state vendors and using sound stages — could qualify for up to $4.5 million in tax credits under the state program. That credit would be subtracted directly from the company’s state income tax bill. But the state tax credit alone isn’t enough to attract production companies to San Diego County or Chula Vista. Mayor John McCann envisions a three-tiered tax credit system to attract film and television production to the city. “You’d be able to have a Chula Vista City Credit. You’d have a San Diego County credit, and then you’d have the California credit,” McCann said. “And what that potentially could do is make us one of the most financially beneficial places to actually do movies and shows.” The city is working with its accounting department to develop the local incentive, McCann said, but has not finished anything yet. San Diego County Supervisor Paloma Aguirre said in an email the county is still finalizing details of their specific tax incentive package. She said the county is also establishing a centralized Film Office to streamline the permitting process.  “Our primary goal is to stimulate the local economy by positioning San Diego County as a premier destination for film and television production,” Aguirre said. “We aim to create local jobs, support small businesses and showcase our beautiful County.” The City of San Diego also has a Film Office, though spokesperson Ramon Galindo said in an email they support Chula Vista’s efforts to break into the production industry. He added the city does not have a city tax credit program. “More filming in Chula Vista means more filming for the region, creating more jobs and economic benefits, which ultimately means we all win,” Galindo said in the email. The location and costs The Millenia Library building, which broke ground in 2023, cost approximately $93 million for core and shell construction. The building was funded predominantly by the city and a $40 million state library grant secured with help from Alvarez. The entertainment complex itself is being funded entirely through private sources, with Roberts estimating the total cost to come out to around $50 million to $80 million. “Productions are already used to trying to go and find the bottom dollar,” Roberts said about the tax credit program and attracting business from studios. “They’re thinking where am I going to get the most bang for my buck?” Alvarez said the combination of tax incentives, modern facilities and workforce development creates conditions for long-term investment in regions outside Los Angeles. “These incentives send a clear message that California is serious about building a statewide creative economy,” Alvarez said. “Cities like Chula Vista can become permanent production hubs by aligning incentives, education and infrastructure.” ...read more read less