California Governor Proposes $1 Billion Annual Tax Credit to Keep Hollywood at Home
Written by AI from screendaily.com's report. Not checked by a person.
Governor Gavin Newsom announced a proposal to raise California's annual film and television tax credit to at least $1 billion, which would make it the largest capped production incentive in the United States, as the state battles a continuing slide in local shooting days.
California Governor Gavin Newsom on 2 November 2026 proposed expanding the state's film and television tax credit programme from $750 million to at least $1 billion per year, extended through 2040. If approved by the legislature, it would become the single largest capped film and TV tax credit in the United States. The proposal broadens eligibility by adding credits for above-the-line talent — producers, directors and cast — who were previously excluded from the incentive. It also earmarks $100 million specifically for independent productions and introduces a new 5% bonus for companies that commit to shooting two or more productions in California. The announcement comes only one year after the state quadrupled its previous credit from $330 million to $750 million as part of a $3.75 billion five-year commitment. Despite that increase, Los Angeles-area production has continued to fall: industry tracker FilmLA reported a 4.8% year-on-year decline in shooting days in the third quarter of 2026. Newsom also renewed calls for Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act (MPTERA) before the end of the year, pairing state action with a push for a federal-level credit. The governor framed the move as essential to defending California's identity as the global capital of entertainment.
