Newsom Pushes $1 Billion Boost to Keep Hollywood Money in California

. Governor Gavin Newsom has put forward a plan to expand the state's Film and Television Tax Credit program to at least $1 billion. The major overhaul aims to keep Hollywood investment flowing within the state by including credits for above-the-line talent and earmarking $100 million for independent productions.

The proposed expansion adds a 5% boost in tax credits for companies that commit to more than one production in California and extends the program's longevity through 2040. While pushing this forward, Newsom also issued a public demand for Congress to pass the Motion Picture, Television and Entertainment Revitalization Act (MPTERA) by the end of the year.

California is scrambling to maintain its status as the entertainment capital as the industry faces major headwinds. The state has already seen over 50,000 jobs vanish in the last six years, hammered by the pandemic, major labor strikes, and intense competition from other states like New York and Georgia.

The expanded credits come as a response to these challenges, which include media consolidation and the constant threat of overseas competition. Last year, the annual credit was increased from $330 million to $750 million, representing a $3.75 billion investment over five years through 2030.

The state knows this tool works: since its inception in 2009, the program has sparked over $35.4 billion in economic activity and supported more than 248,000 cast and crew jobs. Furthermore, last year's expansion helped increase film and TV shoot days by 52%.

California Film Commission Director Colleen Bell and Assemblymember Rick Chavez Zbur both backed the proposal, emphasizing that the credit remains a vital tool for protecting the creative economy and small businesses in the state.