California Boosts Film & TV Tax Credit to $750 Million in Bid to Retain Hollywood Dominance
SACRAMENTO, CA – July 3, 2025 – California Governor Gavin Newsom has signed a bill increasing the state’s film and television tax credit program to $750 million annually, more than doubling the previous cap of $330 million.The move comes after intense lobbying from Hollywood and a pledge made nine months ago to bolster the state’s entertainment industry [[1]].
Newsom, alongside Los Angeles Mayor Karen Bass and key industry figures, emphasized the need for California to remain competitive as other states and countries offer increasingly lucrative incentives to attract film and television production.”The world we invented is now competing against us,” Newsom stated, acknowledging the shift in the entertainment landscape.
The increased funding is intended to revitalize production slowed by the pandemic, the 2023 writers’ and actors’ strikes, studio spending cuts, and recent Southern California wildfires [[1]].
Rebecca Rhine, of the Directors Guild of America, praised Newsom’s commitment to the program despite recent challenges including wildfires, federal funding cuts, and the state’s budget deficit. “You understand that our industry is vital to the state’s economy and cultural vibrancy,” she said.
However, the program isn’t without its critics. Taxpayer advocates argue the tax credit represents a “corporate giveaway” that doesn’t deliver the promised economic returns [[1]]. Furthermore, states like Texas and New York are also actively increasing their own production incentives, intensifying the competition for Hollywood’s business.
Key Takeaways:
California’s film and TV tax credit program has been increased to $750 million.
The move aims to combat production leaving the state for more attractive incentives elsewhere.
Industry leaders are optimistic the boost will stimulate production and create jobs. Critics remain concerned about the program’s cost-effectiveness.
