California governor proposes $1 billion film and TV tax credit

Summarised from 2 outlets · Updated 2 Nov, 20:26 · Archive

California Governor Gavin Newsom has proposed increasing the state's film and television tax credit programme from $750 million to $1 billion annually. The proposal would dedicate $100 million to independent productions and encourage companies to produce multiple projects in California. It would also expand eligibility to include above-the-line compensation for actors, directors, writers and producers, subject to caps.

Newsom proposed extending the tax credit through 2040 and called on Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act by the end of the year. He said the expansion was designed to maintain momentum from last year's increase from $330 million to $750 million. "California created the modern entertainment industry; we're the capital of entertainment and we're going to keep it here," Newsom said in a statement.

According to Newsom's office, the state's tax incentive programme has created 43,000 new jobs for cast and production crews, with about $8.25 billion spent on production to date this year. Applications for the tax credit have increased by 82 per cent. The New York Post reports that California has lost 52,016 film and television jobs since 2022, with on-location production in the Los Angeles area falling 22.4 per cent in the first quarter compared with a year earlier.

California governor proposes $1 billion film and TV tax credit — Image: New York Post

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How it is being reported

Gavin Newsom pitches $1 billion Hollywood tax break — including credits for movie stars’ salariesBefore exiting stage right, lame-duck California Gov. Gavin Newsom wants to shower Hollywood with at least $1 billion in annual tax credits — including new breaks for productions covering movie stars’ salaries.New York Post · 2 Nov, 20:15
Gov. Newsom proposes $1 billion tax credit for TV, filmCalifornia Gov. Gavin Newsom on Monday proposed increasing the state's tax credit program for film and television from $750 million to $1 billion.UPI · 2 Nov, 19:33

In this story: Gavin Newsom · California · Congress · Georgia · Xavier Becerra

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