California Boosts Film and TV Tax Incentives to $750 Million
The California legislature has enacted a substantial increase in tax incentives aimed at revitalizing the film and television industry within the state, raising the cap on tax credits from $330 million to an impressive $750 million annually.
"More than doubling the program's allotted cap to $750 million annually underscores just how vital our industry is to the economic health of our state, and the power of our members' voices," stated the Entertainment Union Coalition, emphasizing the importance of this legislative move.
Los Angeles, historically the epicenter of film and television production in the United States, has faced challenges in maintaining its leading position. The city has seen a decline in business as studios have migrated to states like New York and Georgia, which offer more appealing incentives. In response to this trend, Governor Gavin Newsom and Los Angeles Mayor Karen Bass introduced the proposal last October.
Newsom's office indicated that further legislation is anticipated as part of the tax credit expansion initiative, signaling a commitment to bolster the industry.
Assemblymember Rick Chavez Zbur, representing parts of Los Angeles County, expressed strong support for the tax credit expansion. "After years of uncertainty, workers can once again set the stage, cue the lights, and roll the cameras—because California is keeping film and TV jobs anchored right here, where they belong," Zbur remarked.
Zbur is also the author of AB 1138, legislation designed to modernize and enhance the film tax credit program. He described this initiative as "a historic investment in our creative economy, our working families, small businesses, and the communities that depend on this industry to thrive." He added, "We're not just restarting production—we're rewriting the script to put workers back at the center of California's entertainment future."
According to Zbur's office, since 2009, the tax credit program has been responsible for creating approximately 197,000 jobs and generating an estimated $26 billion in economic activity. This significant impact highlights the critical role that film and television production plays in California's economy.
The renewed focus on supporting local production is expected to not only retain existing jobs but also attract new projects back to California, reinforcing its status as a leading hub for entertainment.
