Standing at a movie studio in Burbank, Gov. Gavin Newsom on Wednesday formally unveiled a $750 million expansion of California’s film and television tax credit program, part of a push to keep Hollywood production at home and boost local jobs.
The new funding more than doubles the state’s current credit, which had been capped at $330 million annually, and positions California among the nation’s most generous states for capped film incentives. State lawmakers approved the measure last week in a bid to help revive a struggling industry and prevent productions from relocating to regions with bigger incentives.
Newsom was joined by Los Angeles Mayor Karen Bass, labor union representatives, entertainment industry leaders, as well as state leaders, in making the announcement.
He said Hollywood has put California on the map for people around the world, noting that four out of 10 people who visit the state say they do so because of the images Hollywood creates.
“This is part of who we are, brand California, it is part of the dream,” Newsom said. “So we’re here promoting the dream. We’re here protecting the dream, but we’re here because we’re putting a face on it.”
According to the Governor’s Office, the expanded tax credit is projected to increase the number of film jobs supported by the program by about 50%. Officials said the program has been oversubscribed for years, forcing many productions to leave California, and that the additional funding will help keep those jobs and economic activity in the state.
Mayor Bass, who in May issued an executive order to make filming in Los Angeles easier and more affordable, said the city would work to complement the new state incentive.
“Sacramento did its job, now it’s time for L.A. City to do our job,” she said. “We have tens of thousands of Angelenos working in the industry — actors, directors, writers, stage hands and more — but it’s also about all the businesses that rely on this industry — the flower stores, the carpentry shops, the restaurants. Hollywood is the cornerstone of this city and our economy.”
Assemblymember Rick Chavez Zbur, D-Hollywood, called the funding “a lifeline,” saying it would mean jobs returning to soundstages, crews back on set, and local small businesses like caterers and equipment rental shops getting to work again.
Zbur and Assemblymember Isaac Bryan, D-Culver City, authored AB 1138 while state senators Ben Allen, D-Santa Monica; Caroline Menjivar, D-San Fernando Valley; and Henry Stern, D-Sherman Oaks carried SB630. Together, the bills aim to modernize California’s Film and TV Tax Credit Program to keep production companies in L.A. and attract new ones.
In recent years, Los Angeles has seen a steady decline in on-location filming as studios increasingly opt for cities like New York, Atlanta, Vancouver and Toronto, drawn by faster permitting and generous tax incentives.
The downturn follows years of disruption from the pandemic, writers’ and actors’ strikes, layoffs and uncertainty over artificial intelligence’s impact on jobs and storytelling.
The new incentives drew a mix of praise and cautious optimism from industry professionals, who said the funding boost was an important step but urged state and local leaders to go even further to keep productions in California.
Jamie Patricof, a film/TV producer and a member of Producers United, called the tax credit expansion a critical step toward bringing production back to California.
“This was a major hurdle that we had to overcome,” Patricof said. “It’s not the be-all-end-all. It’s not the cure. (It’s) not all of a sudden going to be the number one option for every production, but for some production it’s going to make a big change and make a change instantly.”
But others said officials should take even bolder steps, such as eliminating permit requirements and reducing fees to zero.
“We live in an era where there is production happening all across the world, so Los Angeles has to compete with every other film-friendly city, not only in America, but on the planet,” said Austin James Wolff, an L.A.-based filmmaker. “If the government wants Hollywood to be the center of production again, they need to be the most competitive out of every other city.”
Lindsay Dougherty, secretary-treasurer of Teamster Local 399, a union representing film industry crew members, said members are “very excited and extremely grateful” to the governor and lawmakers.
“Today is definitely a day of celebration,” she said. “There’s a lot of work still to be done and the work doesn’t stop quite frankly with this tax incentive for the state—but also for the city of L.A., and all the surrounding areas, we really have to make it film-friendly for filmmakers, for producers and studios.”
The next round of television tax credit applications will run July 7-9, while film applications will be accepted Aug. 25 to 27. More information on application dates and deadlines are available at film.ca.gov/tax-credit/application/
Staff writer Linh Tat and CNS contributed to this story