California Gov. Gavin Newsom on Monday proposed growing the state's film and television tax credit program to at least $1 billion a year, a move aimed at keeping more productions, and the jobs that come with them, in the state, TheWrap reports.
The plan would extend the credit through 2040, make above-the-line talent costs eligible, set aside $100 million for independent productions and add a 5% boost for companies that commit to more than one California production.
The proposal builds on last year's expansion, which more than doubled the program from $330 million to $750 million annually, a $3.75 billion commitment over five years through 2030. According to the governor's office, productions approved since that expansion are expected to generate $8.25 billion in direct spending, including $3.2 billion in qualified wages, and support more than 43,000 cast and crew jobs. The state also counted more than 8,600 filming days, including 1,823 outside the Los Angeles studio zone.
Newsom paired the announcement with a call for Congress to pass the Motion Picture, Television and Entertainment Revitalization Act by the end of the year, arguing that states cannot carry the cost of competing for production on their own. The announcement arrives as California prepares to elect Newsom's successor in this week's midterm elections.
Why it matters
Los Angeles has spent years watching film and TV work move to states and countries with richer incentives, leaving local crews with long gaps between jobs. For a city whose workforce and storytellers are deeply Black and Latino, where shows and films get made shapes who gets to make them.
The proposed $100 million independent carve-out could matter most for smaller filmmakers working outside the studio system, including many Black and Latino directors and producers. How that pool is structured, and whether it reaches first-time and low-budget filmmakers, will be worth watching as details emerge.
