California Governor Gavin Newsom Mario Tama/Getty Images California Gov. Gavin Newsom is aiming for major expansion to the state’s film and TV tax credit program, proposing to dramatically increase the annual credit from $750 million to $1 billion. That incentive has proved crucial to keep Hollywood projects — The Pitt ($24.2 million in credits), a Snoop Dogg biopic ($17 million), Ice Cube sequel Last Friday ($11.4 million in credits), Ang Lee’s Gold Rush era drama ($7 million), among many others — filming in state.
The politician, who’s also eying the Democratic nomination for the 2028 presidential cycle, also backed a bipartisan effort in Congress championed by Donald Trump to create a national film and TV tax incentive, which would stack along with each state’s individual credits. The announcement on Monday threw fuel on the fire to push Sacramento politicians to do more to help out the Golden State’s most iconic industry. And that effort to push the next round of bulked up incentives will fall to the next governor of California, likely Democrat Xavier Becerra if he defeats Republican Steve Hilton on Election Day this Tuesday.
“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here,” Newsom stated on Monday. “At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry. Through this expansion, we will maintain the momentum and success of our historic expansion last year. But states can’t shoulder the cost alone, which is why I am calling on Congress to back up an expanded tax credit by passing national film and TV tax credit legislation already on the table.”
Newsom and state officials are facing a dilemma. While California remains the top destination for Hollywood film and TV production spending, its reign is being threatened by other major hubs. That includes East coast markets like New York and New Jersey or numerous overseas locales including the United Kingdom, which has bulked up soundstage infrastructure. Meanwhile, film and TV shoot days in Hollywood’s historic home, Los Angeles, are in a downward spiral despite efforts being made to cut red tape and boost incentives offered to productions to shoot locally.
The California Film Commission, led by outgoing director Colleen Bell, oversees the film and TV credit program, distributing the $750 million annually to major studio projects as well as numerous indie productions, including many with California-flavored plotlines that prominently showcase locations. In a round of credits unveiled on Oct. 7, Pixar, Lionsgate and Paramount alone were granted about $100 million in California tax credits for projects including an untitled Pixar animated feature ($40.1 million), Lionsgate’s sequel to Michael ($30.8 million) and an untitled crime thriller from Paramount Pictures ($29.3 million).
“I’m grateful for Governor Newsom’s leadership and his call to expand California’s Film and TV Tax Credit to over $1 billion,” said commission director Bell. “The California Film and TV Tax Credit has become one of our most important tools to increase production in California, support crews and strengthen the creative economy that makes this state the entertainment capital of the world.”
There’s no guarantee, however, that throwing more money at the problem will work. California has already upped its annual film and TV tax credit from $330 million to $750 million in a major legislative push in 2025 that saw Newsom describe the move as a lifeline for the state to compete against international competitors like Toronto, Vancouver, New Zealand, the United Kingdom as well as U.S. hubs. “We put our feet up, we took things for granted,” he said at a bill signing event at Warner Bros.’ The Ranch Lot Studios in Burbank just last July.
More to come.
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