Hollywood Wins Big: California Approves $750M Boost to Film & TV Tax Credit Program

California is doubling down on its efforts to bring film and television production back to the Golden State.

A major budget bill championed by Governor Gavin Newsom was approved by both the State Assembly and Senate on Friday, dramatically expanding the state’s annual cap on entertainment tax credits from $330 million to $750 million. The move positions California as one of the most competitive filming hubs in the nation—rivaling industry giants like Georgia and New York.

Originally introduced in late 2024, Newsom’s proposal gained momentum in recent months, ultimately passing the Assembly in a 64–1 vote and the Senate 31–3. The legislation aims to reverse the ongoing exodus of productions lured away by more generous incentive packages in states like Texas, which recently boosted its own film and TV incentives by $100 million every two years.

The Entertainment Union Coalition, a key supporter of the bill, applauded the expansion, saying it "underscores just how vital our industry is to the economic health of our state." The coalition also urged studios to take advantage of the new benefits and “recommit to the communities and workers across the state that built this industry and built their companies.”

The expansion extends funding through 2035, potentially injecting up to $1.5 billion into California’s entertainment sector over the next decade. New changes include:

• Raising the base tax credit to 35%
• Expanding eligibility to include shorter TV series, animated shows, sitcoms, and large-scale competition programs (excluding reality, talk, or game shows)
• Removing the requirement that soundstage incentive recipients own over half of the space or lease for a minimum of 10 years

Industry insiders are working quickly to implement programmatic changes before the July 7 deadline, when the next application window for tax credits closes.

Despite the financial boost, challenges remain. The latest FilmLA report shows a 22% year-over-year decline in filming activity in L.A. during the first quarter of 2025.

Still, officials like Dee Dee Myers, a senior adviser to Gov. Newsom, remain confident: “The program not only pays for itself but generates economic activity. It’s a good deal for taxpayers.”

If implemented as planned, the legislation marks the most substantial revision to California’s entertainment incentive program since its launch in 2009.