Golden State Today

Governor Gavin Newsom has announced a proposal to significantly expand California’s Film & Television Tax Credit Program. The proposed increase to $750 million annually marks a substantial rise from the current $330 million allocation. This expansion aims to make California the leading state for capped film incentive programs, overtaking competitors like New York.

The Governor highlighted California's status as a global entertainment hub and emphasized the program's role in keeping production local, creating well-paying jobs, and reinforcing the connection between communities and the state's iconic film industry.

Since its launch in 2009, the tax credit program has generated over $26 billion in economic activity and supported nearly 200,000 jobs statewide. A study revealed that every dollar of approved tax credit produced at least $24.40 in output and other significant economic benefits.

In response to growing demand, tax credits will become refundable starting with Program 4.0 on July 1, 2025. The current program often cannot accommodate all applicants due to limited funding, causing some productions to move out-of-state and resulting in economic losses for California.

Mayor Karen Bass expressed strong support for the expansion, stating: “Hollywood is the cornerstone of this city and our economy and our message to the industry today is clear – we have your back.”

Recent allocations of tax credits include substantial investments across various projects. In September 2024, $51.6 million was allocated to support independent films and TV series like "Suits LA," projected to generate $284.4 million in spending. Other notable allocations included $152 million for Amazon’s "Fallout" relocation from New York, anticipated to bring over $1.1 billion in spending.

The proposed expansion seeks to reverse trends where productions unable to secure California's tax credits have opted for locations outside the state.