Gov. Gavin Newsom is proposing another major expansion of California’s film and television tax credit, urging the state to dedicate at least $1 billion annually to keeping production in California. Just last year, the program saw an expansion from $330 million to $750 million.
The proposed expansion would extend the program through 2040 and dedicate $100 million annually to independent films, a $26 million increase from the current program. Above-the-line expenses would also become eligible, providing compensation for creative talent such as actors, directors and producers. Furthermore, companies committing to multiple California productions would receive a 5% increase in tax credits. If passed, the proposal would make California’s program the largest capped film and TV tax credit in the country.
California has been trying to maintain and bring production back to Hollywood, especially as competition from other states and international filming locations grows. Newsom’s administration argues that the program’s expansion has already helped drive production and entertainment jobs back to California.
“At least $1 billion in tax credits means more investment flowing into our economy and ...