Newsom proposes raising California's film and TV tax credit to at least $1 billion
The outgoing governor wants to expand the state's production incentive program and push Congress to pass a national version before year's end.
What to know
- Newsom proposes raising California's annual film and TV tax credit cap from $750 million to at least $1 billion, extending it through 2040.
- The plan adds credits for above-the-line talent, $100 million for independent productions, and bonuses for companies committing to multiple in-state productions.
- Proposal comes as California has lost over 50,000 industry jobs in six years amid pandemic disruption, strikes, and competition from other states and countries.
- Newsom is simultaneously pressing Congress to pass the MPTERA, a federal tax credit requiring 75% of principal photography to occur in the U.S.
“But states can’t shoulder the cost alone, which is why I am calling on Congress to back up an expanded tax credit by passing national film and TV tax credit legislation already on the table.”
Gavin Newsom, California Governor · Governor of California press release ↗ · Nov 1
Gavin Newsom California GovernorColleen Bell California Film Commission DirectorRick Chavez Zbur California Assemblymember (D-Hollywood)Dee Dee Myers Senior Advisor to Governor Newsom, GO-Biz Director
Adam Schiff U.S. Senator from California
How it unfolded 3 developments, newest first · click a bar or a number to jump articlespostscomments
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Newsom renews push for Congress to pass MPTERA by year-end
Alongside the state proposal, Newsom called on Congress to pass the Motion Picture, Television and Entertainment Revitalization Act, which would require 75% of principal photography days to be filmed in the U.S. and establish a 20% federal tax credit on domestic production labor costs.
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It's based on qualified expenses within the state, and the production just gets a chunk of what they paid back. Each state has different rules on what qualifies, but I think across the board whatever is paid for has to come from a vendor that has a local (same state) business. So the taxes paid go to that state. Things like Amazon don't qualify…
2 more of the top 3 · 7 posts in this stretch
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The leaders of this country seem so focused on the fruit and they go on the news and tout the new numbers or blame each other for the bad numbers and hardly any spend time talking about the roots. And they act like we can just throw fertilizer on dead roots and suddenly it will grow. They’ve allowed the tree to die. The talent has left and moved…
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They also do it to avoid unions and to avoid paying people more. I remember talking to a guy who was from nz and worked in the industry. Basically said nz made a law forbidding unions in the movie industry. Just so they could attract movie companies, it did but nz workers pay has been really stagnant.
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State officials praise the proposed expansion — California Film Commission Director Colleen Bell, Assemblymember Rick Chavez Zbur, and Senior Advisor Dee Dee Myers publicly welcomed the proposal as a way to protect jobs and strengthen the state's creative economy.
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Governor's office formally details the $1 billion proposal
The Governor's official release framed the plan as building on last year's expansion and positioned it as the nation's largest capped film and TV tax credit, with backing from GO-Biz and the California Film Commission.
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7 outlets $1 Billion or Bust? Gavin Newsom Proposes Major California Film and TV Tax Credit Expansion
first by The Hollywood Reporter, 6d ago · also Governor of California, Politico, LA Times California, LA Times, UPI, NY Post
6 more headlines
- Governor Newsom proposes historic $1 billion California film and television tax credit - building on the nation's most generous capped credit Governor of California · 6d ago
- Gavin Newsom Proposes $1 Billion Tax Credit Program For California's TV and Film Industry TMZ.com · 6d ago
- Newsom proposes $1 billion California film and TV tax credit Politico · 6d ago
- Newsom proposes $1-billion cap for film and TV tax incentive LA Times California · 6d ago
- Gov. Newsom proposes $1 billion tax credit for TV, film UPI · 5d ago
- Gavin Newsom pitches $1 billion Hollywood tax break — including credits for movie stars’ salaries NY Post · 5d ago
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Newsom proposes expanding CA film/TV tax credit to at least $1 billion
Newsom announced a plan to raise the state's capped Film and Television Tax Credit Program from $750 million to at least $1 billion, including credits for above-the-line talent, $100 million for independent productions, a 5% boost for companies committing to multiple California productions, and an extension through 2040.
“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here.”
— Gavin Newsom -
4 outlets first by Los Angeles Times, 6d ago · also Variety, Sacramento Bee, California State Portal | CA.gov · read ↗
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2 outlets first by IndieWire, 6d ago · also Quartz · read ↗
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Schiff cites 42,000 lost Hollywood jobs to overseas production — California Senator Adam Schiff said the industry had lost roughly 42,000 jobs, noting 45% of American films and TV shows were shot overseas in 2025, up from 33% in 2022.
What people are saying 4 voices from 1 site · best of 7 · verbatim
- Nov 3
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https://www.cbsnews.com/sanfrancisco/news/california-homelessness-spending-audit-24b-five-years-didnt-consistently-track-outcomes/ https://www.reddit.com/r/California/s/F32UtUwj8H
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lol full on conspiracy theory. Did you have to retreat to that when you realized how idiotic your “they get tax cuts to pay celebrities more” take was?
- Nov 2
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it's been leaving at a steady rate for over 15 years, but now that it's a husk people care.
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It's not that it needs public funds, it's that if some places are offering them, then why wouldn't you take them? It would certainly be better if no one offered tax credits for movies, but since some one else always will, you have to if you want to be competitive.