On Sunday, California Governor Gavin Newsom announced a plan to significantly increase the state’s Film & Television Tax Credit Program. Under this proposal, the annual allocation would rise from $330 million to $750 million, making California the leading state for capped film incentives. This surpasses New York’s recent increase of their cap to $700 million and puts other states in competition.
Since its establishment in 2009, California’s Film & Television Tax Credit Program has generated over $26 billion in economic activity and supported more than 197,000 jobs for cast and crew throughout the state. However, due to high demand each year, many productions have been unable to secure these credits and have instead chosen to relocate out of state.
During his speech at Raleigh Studios in Los Angeles on Sunday, Gov. Newsom emphasized that this expansion is both necessary and feasible for California: “We are able and willing to make this investment because we recognize that our industry is now competing against us.”
