Great News for California's Film Economy

Governor Gavin Newsom is championing a major boost in California’s film and TV tax incentives, proposing to more than double the existing annual cap from $330 million to $750 million. This proposal, aimed at revitalizing California’s entertainment industry, positions the state to better compete with other states like New York and Georgia that have lured away productions with their own hefty incentives. Newsom’s pitch to the legislature includes making these tax credits refundable for the first time, a potential game-changer for both local economies and workers who rely on production jobs.

In his announcement, Newsom framed the expansion as a move to keep California “big and bold” in the entertainment world. This increase aims not only to protect the state’s storied position in Hollywood but also to address what he called a “legitimate crisis” as productions increasingly head elsewhere. Los Angeles Mayor Karen Bass joined Newsom, emphasizing the importance of “working folks” and keeping jobs within local communities to help foster stability for California families and businesses.

The program’s economic benefits are well-documented: every dollar of tax credit yields a substantial return, adding around $24 in economic activity and $8.60 in wages. With California’s existing tax credit program consistently oversubscribed, this increase could attract additional productions that would otherwise take their talent, crew, and dollars out of state. The proposal includes safeguards and incentives to promote diversity within productions, reinforcing California’s image as a progressive hub for inclusive storytelling and workforce support.

If passed, this initiative could help prevent further “runaway production” and secure California’s place as the world’s entertainment capital by ensuring that local sound stages remain busy, businesses are bustling, and workers—both on-set and behind the scenes—have a stable future.

Sources: Variety, Deadline