​HOLLYWOOD, Calif. (Oct. 27, 2024) – Governor Gavin Newsom today proposed expanding California’s Film & Television Tax Credit Program from the current $330 million annual allocation to $750 million annually. The massive increase to the program, which is administered by the California Film Commission (CFC), would allow California to outpace other states offering tax credits, luring more entertainment industry projects back to the Golden State.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Governor Newsom said. “Expanding this program will help keep production here at home, generate thousands of good paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

“California needs to keep pace with competing states and nations in providing aggressive tax incentives,” said Colleen Bell, Director of the California Film Commission. “The Governor’s bold plan will accelerate these efforts and assure California remains the production center of the entertainment industry.”

The economic value of increased production pays dividends on many fronts:

• A study of the tax credit program found that, for every tax credit dollar approved, it generated and created at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue resulting from production in the state.
• Since its inception in 2009, California’s Film & Television Tax Credit Program has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state.

According to Bell, the program has been oversubscribed year after year, with more productions applying than can be accommodated under the current budget cap. The results have been tangible. In recent years, projects unable to secure California’s tax credits moved to other locations. That migration caused significant economic losses, with an estimated 71% of rejected projects subsequently filming out-of-state. Many other projects chose not to apply due to the limited funding, suggesting that total runaway production losses are likely much higher.

For example, between 2020 and 2024, data shows California lost an estimated $1.6 billion in production spending due to limited tax credit funding, directly impacting state jobs and local economies.

Despite these challenges, the CFC has enjoyed some major recent wins through the tax credit program, including:

• September 2024: Indie films and “Suits LA.” $51.6 million to support 19 projects, including 15 independent Expected to generate $284.4 million in spending, with $112.1 million allocated to wages, and over 3,800 jobs.
• July 2024: Five new TV projects, including HBO’s “Latitude” and 20th Television’s “All’s Fair.” $58 million in tax credits went to five television projects, which was expected to generate $386 million across 438 filming Estimated to support 15,869 background performers, 1,196 crew members, and 685 cast members.
• March 2024: Amazon’s Fallout relocated to California. $152 million in tax credits went to 12 projects, including Fallout’s second season relocating from New York. Projected to bring in over $1.1 billion in spending across the state and support 4,500 cast and crew members, plus 50,000 background performer days.
• December 2023: The Mandalorian & Grogu to film in With a total of $400 million allocated to 15 projects, including Lucasfilm’s The Mandalorian & Grogu alone that was set to inject $166 million into California’s economy. Nearly 20,000 jobs created, including 2,252 crew and 598 cast. Other productions included “The Accountant 2” by Amazon Studios, “Untitled 20th Film,” Disney’s untitled live-action feature.

In 2023, Governor Newsom signed a five-year extension of the program, including new workforce diversity provisions, more funding for the Pilot Career Pathways Training Program, and the nation’s first Safety on Production Pilot Program. Furthermore, tax credits will become refundable for the first time since the program’s inception in 2009, beginning with the 2025-26 fiscal year, with Program 4.0 set to commence on July 1, 2025.