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, strengthening the vital link between California’s communities and the iconic film and TV industry. A study of the program found that, for every tax credit dollar approved, it generated at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue from production in the state. 

However, the program has been oversubscribed year after year, with more productions applying than can be accommodated under the current cap. Between 2020 and 2024, data shows California lost production spending due to limited tax credit funding and increased competition in other states and countries, directly impacting state jobs and local economies​​.

In recent years, projects that were unable to secure California’s tax credits and moved to other locations as a result contributed to significant economic losses, with California losing 71% of production spending by these rejected projects subsequently filming out-of-state.

The Governor’s proposal to expand California’s Film & Television Tax Credit Program to $750 million annually, a massive increase from the current $330 million annual allocation, would position California as one of the top states for capped film incentive programs.