California, September 22, 2025
News Summary
California has significantly expanded its film and television tax credit program, awarding $256 million to 22 television shows. The $750 million tax credit aims to attract production companies to film in the state, promoting local job creation and economic activity. This increase follows a budget negotiation led by Governor Gavin Newsom aiming to make California competitive for filmmakers. The initiative is projected to generate $1.1 billion in economic activity and create around 6,500 jobs, enhancing California’s status as a leading hub for film production.
California has significantly expanded its film and television tax credit program, awarding $256 million to 22 television shows. The funding is part of a broader budget strategy that includes a substantial increase in incentives to attract production companies to film within the state rather than relocating to competing states or countries. The increased tax credits are set at $750 million for the film and video industry, more than double the previous amount.
The expansion comes in the wake of negotiations in June 2023, when Governor Gavin Newsom and legislative leaders finalized a state budget that made reductions to some health and welfare programs to address a budget shortfall. Despite the cuts elsewhere, the government has prioritized creating a competitive landscape for filmmakers, reflecting California’s enduring appeal as an ideal location for business.
The tax credit program aims to stimulate local economic growth, with projections indicating that the funded shows will generate approximately $1.1 billion in economic activity in California, alongside the creation of around 6,500 jobs for cast and crew members. Most of the productions receiving the credits are expected to shoot in the greater Los Angeles area, though some will occur in other regions of the state.
New incentives within the program allow for a tax credit of up to 35% for productions filmed in L.A. and up to 40% for those shot outside the region. The number of applications for tax incentives has skyrocketed since the program’s expansion, with almost a 400% increase observed. Additionally, the credits now encompass a wider range of eligible productions, including half-hour shows, large-scale competition shows, and animated series, marking a shift from previous requirements.
The California Film Commission has also committed to continuously re-evaluating the tax incentive program to ensure that the state remains competitive with other jurisdictions. Awarded productions include those from major networks and streaming services, such as Apple TV+, Netflix, and CBS, with notable projects benefitting from the tax credits encompassing “The Studio,” “Presumed Innocent,” and various new pilot productions.
According to the Legislative Analyst’s Office, funding allocated to the film and video sector is part of a larger trend of tax expenditures that benefit specific economic sectors or corporations, ultimately reducing state revenues by over $100 billion annually. Public employee unions within California are advocating for reductions to corporate tax breaks to help manage the ongoing state deficit.
In addition, local governments have adapted their approach to property tax allocation, shifting funds from redevelopment zones to school districts since 2011. In the current fiscal year, approximately $140 million in rebate subsidies have flowed from these local governments to sellers, further illustrating how cities are using various financial incentives to stimulate taxable business investment.
The total estimated economic benefit resulting from the 22 productions funded includes around $714 million in qualified expenditures and $413 million in qualified wages. As California continues to bolster its position as a leading hub for film and television production, this expansion reflects a commitment to fostering local job creation and economic activity.
Frequently Asked Questions (FAQ)
What significant change was made to California’s film and television tax credit program?
How much funding was awarded to television shows in this recent expansion?
What impact is the funding expected to have on the California economy?
| Feature | Details |
|---|---|
| Increased Tax Credits | $750 million |
| Funding to Shows | $256 million |
| Estimated Economic Activity | $1.1 billion |
| Jobs Created | 6,500 |
| Tax Credit Rates | 35% (L.A.), 40% (Outside L.A.) |
| Increase in Applications | 400% |
| Local Subsidies to Sellers (2023-24) | $140 million |
| Estimated Qualified Expenditures | $714 million |
| Estimated Qualified Wages | $413 million |
