GOVERNOR NEWSOM ANNOUNCES PROPOSAL TO EXPAND CALIFORNIA FILM COMMISSION’S TAX CREDIT PROGRAM FOR FILM AND TV PRODUCTION

Oct 27, 2024 | Press Release

​HOLLYWOOD, Calif. (Oct. 27, 2024) – Governor Gavin Newsom today proposed expanding California’s Film & Television Tax Credit Program from the current $330 million annual allocation to $750 million annually. The massive increase to the program, which is administered by the California Film Commission (CFC), would allow California to outpace other states offering tax credits, luring more entertainment industry projects back to the Golden State.

“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Governor Newsom said. “Expanding this program will help keep production here at home, generate thousands of good paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

“California needs to keep pace with competing states and nations in providing aggressive tax incentives,” said Colleen Bell, Director of the California Film Commission. “The Governor’s bold plan will accelerate these efforts and assure California remains the production center of the entertainment industry.”

The economic value of increased production pays dividends on many fronts:

  • study of the tax credit program found that, for every tax credit dollar approved, it generated and created at least $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in initial state and local tax revenue resulting from production in the state.
  • Since its inception in 2009, California’s Film & Television Tax Credit Program has generated over $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state.

According to Bell, the program has been oversubscribed year after year, with more productions applying than can be accommodated under the current budget cap. The results have been tangible. In recent years, projects unable to secure California’s tax credits moved to other locations. That migration caused significant economic losses, with an estimated 71% of rejected projects subsequently filming out-of-state. Many other projects chose not to apply due to the limited funding, suggesting that total runaway production losses are likely much higher.

For example, between 2020 and 2024, data shows California lost an estimated $1.6 billion in production spending due to limited tax credit funding, directly impacting state jobs and local economies.

Despite these challenges, the CFC has enjoyed some major recent wins through the tax credit program, including:

 

In 2023, Governor Newsom signed a five-year extension of the program, including new workforce diversity provisions, more funding for the Pilot Career Pathways Training Program, and the nation’s first Safety on Production Pilot Program. Furthermore, tax credits will become refundable for the first time since the program’s inception in 2009, beginning with the 2025-26 fiscal year, with Program 4.0 set to commence on July 1, 2025.

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.

 

About California Film Commission
The California Film Commission (CFC) is one of several economic development departments within the Governor’s Office of Business and Economic Development working to attract, retain, and expand business opportunities in California. The CFC supports a production-friendly environment to retain and grow production jobs and economic activity statewide, enhancing California’s position as the leading location for all forms of media content creation nationally and globally. For more information visit the CFC website.

 

About the California Film Commission and Tax Credit Program
The California Film Commission enhances California’s status as the leader in motion picture, television and commercial production. It supports productions of all sizes/budgets and focuses on activities that stimulate and preserve production jobs, spending and tax revenues in California. Services include administration of the state’s Film & Television Tax Credit Program, permits for filming at state-owned properties, an extensive digital location library, location assistance and a range of other production-related resources and assistance.

Willie Rudman
Deputy Director of Communications
Email, HERE

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