HOLLYWOOD – Governor Gavin Newsom on Oct 27 announced a proposal to expand California’s Film & Television Tax Credit Program to $750 million annually, a massive increase from the current $330 million annual allocation. This ambitious expansion would position California as the top state for capped film incentive programs, surpassing other states like New York.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation, and unparalleled talent. Expanding this program will help keep production here at home, generate thousands of good-paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry,” said Governor Gavin Newsom.

A study of the program found that, for every tax credit dollar approved, it generated at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue from production in the state.

Since its inception in 2009, California’s Film & Television Tax Credit Program has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state.

California previously updated the program to include new workforce diversity provisions, more funding for the Career Pathways Training Program, and the nation’s first Safety on Production Pilot Program.

Tax credits will become refundable for the first time since the program’s inception in 2009, beginning with Program 4.0 set to commence on July 1, 2025.

This program has been oversubscribed year after year, with more productions applying than can be accommodated under the current cap.

Between 2020 and 2024, data shows California lost production spending due to limited tax credit funding and increased competition in other states and countries, directly impacting state jobs and local economies.

In recent years, projects that were unable to secure California’s tax credits and moved to other locations as a result contributed to significant economic losses, with an estimated 71% of rejected projects subsequently filming out-of-state.

 (Photo Source：The Governor Office Newsroom)