California Boosts Film and Television Tax Credit Program

California, September 5, 2025

News Summary

California has significantly increased its Film and Television Tax Credit Program budget from $330 million to $750 million, leading to a 400% rise in aid applications. The program has already approved 22 TV projects, marking a 38% increase from last year. This financial support aims to counteract declining film productions in the state and stabilize the sector amid growing competition. The new initiatives are projected to generate $1.1 billion in economic activity while enhancing job retention and creation in California’s entertainment industry.

California has significantly boosted its Film and Television Tax Credit Program, increasing its annual budget from $330 million to $750 million as of July. This enhancement has led to a staggering 400% increase in aid applications compared to the same timeframe last year, as reported by the Governor’s Office of Business and Economic Development.

The program has already approved 22 television projects in the initial round of incentive awards, a notable 38% increase from the 16 approvals during the same period last year. This surge in applications and approvals is anticipated to utilize half of the $750 million available financial incentives for television projects, with the remaining funds earmarked for forthcoming film ventures.

In the current landscape, tax credits are deemed essential for preserving film productions in California, especially as competition from other states and countries providing attractive financial packages intensifies. Currently, filming at studio properties in Los Angeles has not yet returned to pre-pandemic levels, which has notably dampened real estate demand. Landlords and brokers have indicated that the expanded tax credit program is instrumental in filling production stages and stabilizing the sector.

As part of the revitalization effort under the new tax credit initiative, Netflix has relocated Tom Segura’s series “Bad Thoughts” from Texas to Los Angeles. Despite the encouraging response to the new incentives, there are ongoing concerns about maintaining this heightened interest in film and television productions within the region.

California’s status as the global entertainment capital has waned, with challenges stemming from the pandemic, labor strikes, and escalating competition. Reports indicate that from 2017 to 2024, global incentive programs have expanded by 39%, with numerous cities competing for film and television projects.

The newly revised tax credit program raises the project credit cap from 20% to 35%, also introducing the option for reimbursement of unutilized credits beginning in the 2025-26 fiscal year. The application process for film projects is set to commence in August, wherein the California Film Commission will assess applications based on criteria such as job creation, project spending, and commitment to filming within the state.

Some of the projects awarded credits include 15 new series, five renewals, and two relocations from other states. Major new shows include Hulu dramas crafted by Dan Fogelman and a new HBO series from Larry David. The approved projects are projected to generate $1.1 billion in economic activity, comprising $714 million in spending and $413 million in wages.

The filming activities associated with these projects will span over 1,100 days across California, facilitating employment for approximately 6,500 crew members and more than 46,000 background actors. Almost all the approved television shows are connected to major studios based in Los Angeles, such as Warner Bros. Television, which is in the process of finalizing a $500 million renovation of its Burbank studio to add sound stages and office space.

In addition to this, new production facilities and expansions are in progress, including a $1 billion overhaul of Television City by Hackman. The California Film Commission has expressed optimistic projections regarding the impact of the new tax credit on job creation as well as the retention of production talent within the state. State officials underscore the vital need to keep world-class talent and crews in California to safeguard its future in storytelling.

FAQ

Deeper Dive: News & Info About This Topic

• CoStar: California’s Expanded Incentives
• Wikipedia: Film Tax Credit
• Deadline: California Film & TV Production Tax Incentives
• LA Times: 22 Productions Selected for California Tax Credits
• NY Times: California Production Tax Credit

Author: STAFF HERE HOLLYWOOD

The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.