Proposal to Expand California’s Film & Tax Credit

California Governor Gavin Newsom has proposed an expansion of the state’s film and television tax credit program from the current $330 million annual allocation to $750 million annually.

Administered by the California Film Commission (CFC), the increase to the program would allow California to outpace other states offering tax credits, drawing more entertainment industry projects back to the state.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” said Governor Newsom. “Expanding this program will help keep production here at home, generate thousands of good paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

“California needs to keep pace with competing states and nations in providing aggressive tax incentives,” said Colleen Bell, director of the CFC. “The Governor’s bold plan will accelerate these efforts and assure California remains the production center of the entertainment industry.”

A study of the tax credit program found that, for every tax credit dollar approved, it generated and created at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue resulting from production in the state. 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.