Key facts
- Newsom's office said the $750 million credit has produced $8.24 billion in direct production spending to date.
- The proposal would set aside $100 million annually for independent productions, up $26 million from the current program.
- The expanded credit would cover above-the-line spending on actors and directors, subject to funding caps.
- Companies committing to at least two qualifying productions in California would receive a 5% boost in tax credits.
- Newsom called on Congress to pass the federal Motion Picture, Television, and Entertainment Revitalization Act by the end of 2026.
California Governor Gavin Newsom proposed on November 2 expanding the state's film and television tax credit program to at least $1 billion annually, up from $750 million. The proposal would extend the credit through 2040; the existing program runs until mid-2030.
The expanded incentive would cover above-the-line talent, including actors and directors, subject to funding caps. It would also set aside $100 million annually for independent productions, up $26 million from the current program, and give companies that commit to at least two qualifying productions in California a 5% boost in tax credits.
Newsom's office said the $750 million credit has resulted in $8.24 billion in direct production spending to date, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages for more than 43,000 cast and crew jobs. California increased the credit from $330 million to $750 million in 2025, but production levels in the state have continued to fall. Los Angeles County lost more than 42,000 motion picture industry jobs between 2022 and 2024, according to the report.
Newsom also called on Congress to pass the federal Motion Picture, Television, and Entertainment Revitalization Act by the end of 2026. The legislation, which the report said has bipartisan support, would establish a 20% base tax credit for qualifying film, television and visual effects projects produced in the US. "California created the modern entertainment industry; we're the capital of entertainment and we're going to keep it here," Newsom said in announcing the program.