California Approves Major Expansion of Film Tax Credits

California lawmakers have approved Governor Gavin Newsom's expansion of the state's Film & TV Tax Credit Program, raising the annual cap to $750 million to counter production declines and out-of-state competition. The latest round allocates $96 million to 48 projects, mostly independent films, anticipated to generate $664 million in spending and over $302 million in wages. The expanded program increases individual project credits up to 35%, or 40% for productions filming outside Los Angeles, and adds incentives for hiring from underserved communities. The move follows industry concern over major productions leaving California. Over 6,500 cast and crew jobs and 32,000 background performer roles are expected. A final vote on the budget and tax credit expansion is imminent.