Newsom Proposes Expanded Film Tax Credits

California Governor Gavin Newsom has proposed a significant expansion of the state's Film & Television Tax Credit Program, increasing the annual tax credits from $330 million to $750 million. This proposal aims to revitalize the state's struggling film and TV industry, which has seen productions moving to other states and countries with more lucrative incentives. The expanded tax credit is intended to create more jobs and investment, and to compete with other locations like Georgia and New York, which offer substantial film incentives. The plan requires approval from the state Legislature and could be implemented as early as July 2025. Industry leaders, including union representatives and the Los Angeles Mayor, have expressed support, highlighting the economic importance of keeping productions in California. The initiative comes amid declining production rates in the Los Angeles area, exacerbated by the pandemic and recent industry strikes.