California Governor Gavin Newsom has unveiled a massive increase in the incentives of the state’s film and TV tax credits program in an effort to jumpstart work there. Announced at Raleigh Studios, the Governor says he aims to boost the state’s tax credits from their present level of $330 million a year to around $750 million annually. The increase is subject to approval by the Democratic majority legislature in the state’s 2025-2026 budget, and is expected to pass.
The announcement comes as production in Los Angeles and across the state has dramatically shrunk over the last year or so – falling double digits last year. The program currently offers 20-25% tax credits for studio/streamer films, indie films, new TV series and relocating shows. It has been seen as very difficult to get tax credits on the program and the state struggles to compete with Georgia, Louisiana, New York, Canada and various international locations.
The Los Angeles Economic Development Corporation says for every tax credit dollar allocated, it resulted in at least $24.40 in economic output – so the program has been considered a success. Source:.
