Governor Gavin Newsom announced a major expansion of California’s film and television tax credit program on Wednesday, increasing the funding to $750 million annually. This move aims to retain Hollywood productions in the state and bolster local employment. Previously capped at $330 million, the new funding positions California among the most generous states for film incentives.
Governor Newsom, speaking at a movie studio in Burbank, emphasized the need for California to compete with other states like Texas, Louisiana, and Georgia, which offer attractive incentives for film production. “The world we invented is now competing against us,” he said.
The expansion is expected to increase the number of film jobs by about 50%, according to the Governor’s Office. The program has been oversubscribed for years, leading many productions to move out of state. The additional funding will help retain these jobs and economic activities within California.
Los Angeles Mayor Karen Bass highlighted the importance of the industry to the local economy, noting that it supports not only actors and directors but also numerous small businesses. “Hollywood is the cornerstone of this city and our economy,” she stated.
The expanded program will also support 16 new television projects, projected to generate $1.1 billion in economic activity and nearly 6,700 jobs across the state. The California Film Commission will begin accepting applications for the new tax credits on July 7 for television and August 25 for film.
While the expansion has drawn praise, some industry professionals urge further steps, such as eliminating permit requirements and reducing fees, to keep California competitive.
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