News Summary

California lawmakers are backing Governor Newsom’s proposal to enhance the Film and Television Tax Credit Program, increasing funding to $750 million annually. The changes aim to modernize the existing program, allowing for a higher credit percentage and expanded eligibility criteria. With concerns over job losses and economic activity in the industry, the proposed adjustments are seen as vital to keeping productions in California amidst competition from other states offering more attractive incentives.

California Lawmakers Propose Bold Changes to Film and Television Tax Credit Program

In a move to breathe new life into the cinematic heart of California, lawmakers are rallying behind Governor Gavin Newsom’s proposal to inject an eye-popping $750 million annually into the Film and Television Tax Credit Program. This decision comes in response to a troubling decline in film and television production, with many productions taking their talents out of the Golden State in what some are calling a mass exodus.

Currently, the tax credit program has a cap of $330 million per year, which many believe isn’t enough to keep Hollywood thriving. To change that, lawmakers are introducing new bills aimed at not just tweaking but modernizing the existing program to make it more attractive to filmmakers.

Exciting Changes on the Horizon

Under the proposed changes, the credit percentage for individual projects would skyrocket from 20% to a whopping 35% for expenditures made in Los Angeles. This is a big deal for the local economy! Plus, the eligibility criteria are set to expand, meaning a bigger variety of productions can now qualify for these juicy tax breaks.

If these proposals pass, animated films, series, and even those grand-scale competition shows that we all love could now be lining up for the cash. Shorter television shows just got a lifeline too, as productions with runtimes of 20 minutes or more will be eligible, down from the previous 40-minute threshold.

But wait, there’s more! Productions taking place in designated economic opportunity zones could snag an additional 5% credit, making it even more enticing for filmmakers to shoot in certain areas around the state.

A Reaction to Recent Economic Declines

2015 to 2020, California reportedly lost around 28,000 jobs and $7.7 billion in economic activity as productions opted to shoot elsewhere. The California Film Commission has indicated that the current tax credit program has sparked over $26 billion in economic activity and created more than 197,000 jobs with health and pension benefits.

Voices from the Field and Concerns About Budget

Keeping Up with the Competition

Support and Industry Advocacy

2025-26 fiscal year is fast approaching on June 15, and discussions surrounding these transformative tax credit proposals are heating up. Campaigns like “Keep California Rolling” and “Stay in LA” have emerged, pushing hard for these supportive measures, with strong backing from industry heavyweights.

If these exciting changes come to fruition, they will mark one of the most significant overhauls of California’s film and television tax credit program since it first began back in 2009. This could truly be a game-changer for the entertainment long positioned as the heartbeat of the Golden State!

California Lawmakers Propose Changes to Film Tax Credit Program