Gov. Gavin Newsom has announced that he is proposing an increase to California's film tax incentive to $750 million, more than doubling the current $330 million to revitalize the state's struggling entertainment industry. Announced at Los Angeles' Raleigh Studios, the proposal aims to keep California competitive with states like New York and Georgia, which offer attractive tax breaks to filmmakers. Newsom highlighted the urgent need for bold action, noting that film production remains below pre-2023 strike levels, affecting jobs and local economies.
"We needed to be big and bold We're in a position where we can afford this, and we need to do this," said Newsom.
Los Angeles Mayor Karen Bass has praised the plan, which requires legislative approval in 2025, and other stakeholders expressed support for possible program expansions to include more types of productions.
"Just like we need to do in the World Series, we have to make sure we stay ahead of New York," said Bass.
Labor leaders, including Alex Aguilar from LiUNA Local 724, emphasized that job opportunities in Hollywood are crucial for their members, with many struggling or moving away due to limited work.
Newsom's administration has faced budget constraints, deferring certain social spending to address deficits, yet recent revenue projections suggest the state can afford this boost. The proposal follows a legacy of film incentives first introduced in 2009 and increased over the years, as California battles "runaway production" fueled by generous subsidies elsewhere. Newsom voiced optimism that the expanded incentive would pressure competitors, including Georgia, which has an uncapped incentive program.
Additionally, Newsom suggested a potential federal role in supporting U.S. film production if Vice President Kamala Harris is elected president. The industry has long advocated for a federal incentive to help the U.S. compete with countries like the U.K. and Canada.
Filed Under: gov. newsom, california, hollywood, tax incentive
