California Governor Gavin Newsom this week proposed expanding the state’s current Film and Television Tax Credit Program from $750 million to at least $1 billion, and expanding the program as the nation’s largest capped film and TV tax credit.
The expansion would include credits for above-the-line talent, $100 million for independent productions, rewards for companies that commit to more than one production in California, and an extension of the tax credit through 2040. The governor also renewed his call for Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act (MPTERA) by the end of the year. That proposed legislation would create a 20% federal film and TV tax credit that can stack with state programs.
“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here,” the governor said in a statement. “At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry. Through this expansion, we will maintain the momentum and success of our historic expansion last year. 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.”
“A $1 billion California Film and TV Tax Credit would strengthen California’s creative industries, support more good-paying jobs, and keep our entertainment economy growing,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the GO-Biz. “Expanding the credit would also make California more competitive for the productions, talent, and investment that drive this industry.”
“I’m grateful for Governor Newsom’s leadership and his call to expand California’s Film and TV Tax Credit to over $1 billion,” said Colleen Bell, Director, California Film Commission. “The California Film and TV Tax Credit has become one of our most important tools to increase production in California, support crews and strengthen the creative economy that makes this state the entertainment capital of the world.”
“I’m grateful to Governor Newsom for his unwavering commitment to the workers and small businesses that are the backbone of California’s iconic film and television industry,” said Assemblymember Rick Chavez Zbur (D-Hollywood). “Our work last year to expand California’s Film and Television Tax Credit Program to $750 million annually and modernize the program is delivering results, bringing back tens of thousands of jobs in its first year.
"While we’ve made tremendous progress, we must continue building on that momentum to ensure California remains the film and television capital of the world," Zbur continued. "This is about protecting the future of an industry that has helped define California for generations and ensuring the next generation of creative workers and small business owners can raise their families right here at home.”
The proposal is in addition to the Newsom’s expansion of the California Film and TV Tax Credit last year, raising the annual credit from $330 million to $750 million, a $3.75 billion investment over five years through 2030. The Governor's office claimed that the first year of his expanded California Film and TV Tax Credit delivered;
- Applications up 82% compared to the previous year.
- $8.25 billion in direct production spending to date, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages;
- 261,000 background performers measured in days worked;
- Year over year, film shoot days rose 52%, and TV shoot days rose more than 7%;
- More than 8,600 California filming days, including 1,823 out-of-zone days, ensuring the benefits reach counties and regions across the state, and
- Over 43,000 cast and crew jobs created.
