Newsom proposes $1 billion California film, TV tax credit
Governor Gavin Newsom proposed expanding California’s Film and Television Tax Credit Program from $750 million to at least $1 billion, according to the Office of the Governor of California. The Governor’s office said the change would keep California’s program as the nation’s largest capped film and TV tax credit and help the state compete for productions and jobs.
The Governor’s office said the expansion would attract more productions, support stable, long-term work across the industry, and strengthen the creative economy. The proposal would expand eligibility to above-the-line expenditures, subject to funding caps, to help keep leading creative talent in the state, according to the announcement.
According to the announcement, the proposed expansion includes credits for above-the-line talent, $100 million for independent productions, a 5% credit boost for companies that commit to at least two qualifying productions in California, and an extension of the program through 2040. It would also increase the program’s sunset from five to 10 years to provide more predictability for long-term investment, the office said.
Newsom also renewed his call for Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act by the end of the year. The announcement said he has supported federal legislation to create a 20% federal film and TV tax credit that can stack with state programs.
The Governor’s office said last year’s expansion raised the annual credit from $330 million to $750 million, a $3.75 billion investment over five years through 2030. In the first year since that change, applications rose 82% compared to the previous year; direct production spending totaled $8.25 billion to date, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages, the office said.
Other reported outcomes included 261,000 background performers measured in days worked; year-over-year increases of 52% in film shoot days and more than 7% in TV shoot days; more than 8,600 California filming days, including 1,823 out-of-zone days; and over 43,000 cast and crew jobs created.
“A $1 billion California Film and TV Tax Credit would strengthen California’s creative industries, support more good-paying jobs, and keep our entertainment economy growing,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the Governor’s Office of Business and Economic Development. Newsom said, “At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry.”
