California Governor Gavin Newsom has proposed a major expansion of the state’s tax credit program for the film and television industry, aiming to provide at least $1 billion in incentives and potentially more.
The proposal would extend tax credits to above-the-line talent, including producers, directors and cast members. It also sets aside $100 million for independent projects and offers additional benefits to businesses that commit to producing more than one project in California.
Newsom is also seeking to extend the program through 2040. The plan comes as California faces increased competition from overseas production markets, where lower costs and tax incentives have attracted film and television projects.
California Senator Adam Schiff said in April that the industry had lost 42,000 jobs. He also noted that 45 percent of American films and television shows were filmed abroad in 2025, up from 33 percent in 2022.
Alongside the state proposal, Newsom is renewing his call for Congress to approve the Motion Picture, Television, and Entertainment Revitalization Act by the end of the year. The legislation would require 75 percent of principal photography days to take place in the United States, excluding news, live sports and social media content.
The federal bill would also create a business tax credit starting at 20 percent for domestic labor and production compensation on feature films, television pilots and television seasons with total costs above $1 million.
Sources: TMZ.