Gov. Newsom proposes expanding California film and TV tax credit to $1 billion annually and extending it through 2040

The proposal directly alters state tax incentives for the entertainment industry, affecting production companies, creative workers, and independent filmmakers while committing at least $1 billion annually in state tax credits through 2040.

• •Gov. Gavin Newsom proposed expanding California’s Film and Television Tax Credit Program from $750 million to at least $1 billion annually.
• •The proposal extends the tax credit program through 2040.
• •The plan introduces credits for above-the-line talent, such as actors' salaries.
• •Funding for independent productions would increase from $26 million to $100 million.
• •Companies that commit to shooting two different productions in California would receive a 5% boost in credits.
• •Last year's program expansion raised the annual credit from $330 million to $750 million through 2030.
• •In the first year post-expansion, the credit generated over $8 billion in direct production spending, created over 43,000 jobs, and increased film shoot days by 52% year-over-year.
• •FilmLA reported that shoot days between July and September were down 4.8% from the same period last year and nearly 29% below the five-year average in the Los Angeles area.
• •Congressional leaders introduced the Motion Picture, Television and Entertainment Revitalization Act in September to establish a 20% federal tax credit on U.S. labor.