Governor Newsom proposes historic $1 billion California film and television tax credit – building on the nation’s most generous capped credit

“A $1 billion California Film and TV Tax Credit would strengthen California’s creative industries, support more good-paying jobs, and keep our entertainment economy growing,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of the GO-Biz. “Expanding the credit would also make California more competitive for the productions, talent, and investment that drive this industry.”

“I’m grateful for Governor Newsom’s leadership and his call to expand California’s Film and TV Tax Credit to over $1 billion,” said Colleen Bell, Director, California Film Commission. “The California Film and TV Tax Credit has become one of our most important tools to increase production in California, support crews and strengthen the creative economy that makes this state the entertainment capital of the world.”

“I’m grateful to Governor Newsom for his unwavering commitment to the workers and small businesses that are the backbone of California’s iconic film and television industry,” said Assemblymember Rick Chavez Zbur (D-Hollywood). “Our work last year to expand California’s Film and Television Tax Credit Program to $750 million annually and modernize the program is delivering results, bringing back tens of thousands of jobs in its first year. While we’ve made tremendous progress, we must continue building on that momentum to ensure California remains the film and television capital of the world. This is about protecting the future of an industry that has helped define California for generations and ensuring the next generation of creative workers and small business owners can raise their families right here at home.”

The expansion adds to the momentum created by the Governor’s expansion of the California Film and TV Tax Credit last year, raising the annual credit from $330 million to $750 million, a $3.75 billion investment over five years through 2030. The first year of Governor Newsom’s expanded California Film and TV Tax Credit delivered: 

• Applications up 82% compared to the previous year. 
• $8.25 billion in direct production spending to date, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages. 
• 261,000 background performers measured in days worked. 
• Year over year, film shoot days rose 52%, and TV shoot days rose more than 7%. 
• More than 8,600 California filming days, including 1,823 out-of-zone days, ensuring the benefits reach counties and regions across the state.
• Over 43,000 cast and crew jobs created.

A statewide expansion will help California remain competitive as global competition for production grows, and it will complement a potential federal tax credit which the Governor has previously called for; he recently announced his support for federal legislation to create a 20% federal film and TV tax credit that can stack with state programs, delivering much-needed support to productions nationwide.

What’s included 

🎬 Increase annual tax credit funding to over $1 billion, funding more productions and creating more good-paying jobs for Californians.

🎬 Expand the tax credit eligibility to above-the-line expenditures and make above the line compensation a qualified expenditure to ensure the creative industry’s leading talent stay here in this state, subject to appropriate funding caps.  

🎬 Extend the tax credit sunset from five to 10 years to provide more predictability and support long-term production investment.  

🎬 Introduce an incentive for companies that commit to at least two distinct qualifying productions in California by providing a 5% boost in tax credits. 

🎬 Increase independent film funding to $100 million annually, up $26 million from the current program, to strengthen California’s independent film sector and support a broader range of productions and creative talent. 

Maintaining California’s momentum 

Since its inception in 2009, California’s Film and Television Tax Credit Program has generated over $35.4 billion in economic activity and supported more than 248,000 cast and crew jobs across the state. In years past, for every $1.00 of tax credit awarded, California has seen massive returns: $24.40 in economic output, $16.14 in GDP, and $8.60 in wages. 

Productions supported by the California Film and Television tax credit program won 21 awards across six shows at the 2026 Emmys. The Pitt won Outstanding Drama Series, and Noah Wyle won Outstanding Lead Actor in a Drama Series for the second consecutive year. Fallout, which relocated to California for season 2 won the Emmy for Outstanding Fantasy / Sci-Fi Costumes. 

Supporting workers and the creative economy  

Recent legislation signed by Governor Newsom is helping to protect actors and increase production in California by: 

✅ Creating a new tax credit for post-production work supporting the editors, visual effects artists, musicians, and other creatives who bring film and television to life.

✅ Strengthening the current tax credit program by making credits more valuable through enhanced refundability and supporting independent productions by exempting some of their tax credits from the temporary credit limitation starting in 2027.

✅ Requiring explicit disclosure on any video or audio advertisement that uses AI-generated performers to sell a product or service, and prohibiting the continued use of any advertisement found to be in violation of the law.

✅ Strengthening worker protections signed into law last year by Governor Newsom to help actors and performers protect their digital likenesses in audio and visual productions, helping ensure performers’ legal rights when negotiating the use of digital replicas and establishing rules for recreating the likenesses of performers who have passed away.

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