Newsom Wants California's Film Tax Credit Blown Up to $1B Before He Walks

Gavin Newsom isn't going quietly. The day before California voters choose his replacement, the exiting governor dropped a proposal to swell the state's film and TV tax incentive program from $750 million to more than $1 billion, Deadline reports. If it happens, California's capped program would become the largest in the nation — and leave New York eating dust.

Newsom framed it as a jobs play for a bruised industry. California has shed more than 50,000 production jobs over the past six years as shooting migrated elsewhere. 'At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry,' he said. He also called on Congress to back the bipartisan federal film and TV tax credit bill, a plan with an unusual fan club that includes Donald Trump, Sen. Adam Schiff, the Hollywood guilds, studios, streamers and MAGA loyalists. That legislation is parked until after the midterms.

The package, backed by Assemblymember Rick Chavez Zbur, who represents Hollywood itself, comes with real rewrites to how the money flows. It would open eligibility to above-the-line spending — the stars, directors and writers — extend the credit's sunset from five years to 10, hand a 5% bonus to companies that commit to at least two qualifying productions in-state, and bump independent film funding to $100 million a year, up $26 million from today.

The math is tight and so is the calendar. Newsom leaves office in January 2027, making it unlikely the lame-duck governor can shove the increase through Sacramento in time. But poll-leading Xavier Becerra, his former attorney general and health secretary, is favored to take the seat — and he's already floated his own version of a beefed-up credit. GOP rival Steve Hilton and L.A. mayoral hopefuls Nithya Raman and Karen Bass have pitched their own ideas too.

Newsom's plan keeps a lid on spending, a nod to the state's theoretically balanced $352 billion budget. He signed a $10 million post-production credit into law back in September. Next round: the current batch of tax credit winners learn before Thanksgiving whether they made the cut, with an anticipated $1.08 billion spend in the state. The previous round, revealed October 7, included Lionsgate's Michael Jackson biopic sequel, New Line's Last Friday and a new Mike Mills project.

For Newsom, it's a Hollywood legacy play wrapped in a jobs pitch — and a fresh line on the résumé of a governor with D.C. ambitions and donors to court.