California Lawmakers Agree to Newsom's Film and TV Tax Credit Expansion
Lawmakers have agreed to expand the California Film and TV Tax Credit Program, more than doubling the funding for incentives from $330 million to $750 million.Gov. Gavin Newsom, Sen. Ben Allen, and Assemblymember Rick Zbur fought to keep the line item in the upcoming state budget. Gov. Newsom proposed the expansion last October, and pressure for the measure rose dramatically after the Los Angeles wildfires in January left many in the city desperate for relief.A vote is scheduled on Friday on a trailer bill to make the expansion official, according to Variety.Legislators are currently working on AB1138, a companion bill which would make funding available to more productions, including sitcoms, animation and large-scale competition shows.
The bill would also increase the tax credit for each project from a base of 20% to 35%, with productions filming outside of Los Angeles eligible for up to 40%.A 2% bonus will await productions that hire up to four trainees from a jobs program for 'traditionally underserved' communities. The bill's language protects longtime union members, however, requiring that trainees not displace experienced workers.According to Deadline, filmmakers Patty Jenkins, Cord Jefferson and Jonathan Nolan met with legislators in Sacramento to advocate for the tax credit's expansion.Jenkins said that previously, many lawmakers at the state capital had a 'misunderstanding' of the various workers who benefit from incentives.
'The tax credits were always seen as a giveaway to fat cats and bigwigs,' Jenkins said. 'But they're realizing that it's much bigger than that. It's an entire industry of people at every level, the vast majority of which are not the top 1%.'Jenkins also expressed support for tentpole feature productions that remain in California to receive a federal tax credit. Other states remain fierce competitors, including New York, which recently increased its film and television tax credits to $800 million per year.Amendments to the bill also require producers to report the veteran status and ZIP codes of their employees, along with race, ethnicity and gender. AB1138 is expected to be approved by July 4 and will take effect immediately.The measure won't be the only economic reprieve for the state's declining industry. On Monday, the California Film Commission awarded $96 million in tax incentives to 48 films, 43 of which are independent projects and many working with budgets no greater than $10 million.
This story was originally reported by L.A. Mag on Jun 25, 2025, where it first appeared.
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