California is raising its bid to keep film and television jobs at home. Governor Gavin Newsom wants to expand the state’s Film and Television Tax Credit Program to at least $1 billion, adding new incentives for above-the-line talent and locking the program in through 2040.
The proposal arrives as Hollywood has shed more than 50,000 industry jobs in six years, with the pandemic, wildfires, dual strikes, media consolidation and competition from states such as New York and Georgia all taking a toll.
What the expansion includes
The package would do four things:
- Open credits to above-the-line talent, not only below-the-line crew
- Set aside $100 million for independent productions
- Add a 5% credit boost for companies committing to more than one production in California
- Extend the program through 2040
Newsom is also urging Congress to pass the Motion Picture, Television and Entertainment Revitalization Act, or MPTERA, before the end of the year.
“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here. At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry,” Newsom said.
The return-on-incentive math
California’s program has historically produced strong multipliers. Since 2009, officials say it has generated more than $35.4 billion in economic activity and supported over 248,000 cast and crew jobs. For every $1 of tax credit awarded, the state reports $24.40 in economic output, $16.14 in GDP and $8.60 in wages.
Last year’s increase from $330 million to $750 million has already moved the needle. Since that expansion, the program has recorded $8.25 billion in direct production spending, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages, and created over 43,000 cast and crew jobs. Film shoot days are up 52% and TV shoot days more than 7%.
Why planners should watch
For media planners and production executives, the proposal is not only a California story. It changes the incentive comparison across US production hubs. Above-the-line credits matter because talent costs are often the biggest line item in scripted budgets. If California extends credits there, the cost gap with Georgia or New York narrows.
The multi-production bonus also rewards volume commitments, which may favour larger studios and streamers that can guarantee slates rather than one-off shoots. Independent producers get a specific $100 million window, but the details of which projects qualify will determine how useful that carve-out is.
Three practical checks for slate planning:
- Model California with above-the-line costs included, not just below-the-line crew
- Test whether a multi-production commitment unlocks the extra 5%
- Wait for legislative detail before finalising 2027 budgets
California Film Commission Director Colleen Bell called the tax credit “one of our most important tools to increase production in California, support crews and strengthen the creative economy.”
Still, this is a proposal, not enacted law, and Newsom is explicitly asking Congress to share the cost. The state-level number is only one part of the policy picture.
Source: TheWrap
