California lawmakers approve expanded $750 million film tax credit program
California legislators voted Friday to more than double the amount allocated each year to the state's film and television tax credit program, raising that cap to $750 million from $330 million.
The increase is a win for the studios, producers, unions and industry workers who have lobbied state legislators for months on the issue.
Other states and countries have increasingly lured productions away from California with generous tax credits and incentive programs, leaving many in Hollywood without work for months. In interviews, town halls and legislative committee hearings, industry workers said that without state intervention, they feared Tinseltown would be hollowed out, similar to Detroit after the heyday of its auto industry.
Gov. Gavin Newsom called to expand the annual tax credit program last year, saying at the time that 'the world we invented is now competing against us.'
From there, state lawmakers looked to expand the provisions of the program. A separate bill currently going through the legislature would broaden the types of productions eligible to apply, including animated films, shorts and series and certain large-scale competition shows. It would also increase the tax credit to as much as 35% of qualified expenditures for movies and TV series shot in the greater Los Angeles area and up to 40% for productions shot outside the region.
That bill, AB 1138, was unanimously approved Thursday by the state Senate Revenue and Tax Committee. It will be up for final votes next week.
California currently provides a 20% to 25% tax credit to offset qualified production expenses, such as money spent on film crews and building sets. Production companies can apply the credit toward any tax liabilities they have in California.
The bump to 35% puts California more in line with incentives offered by other states, such as Georgia, which provides a 30% credit for productions.
Lawmakers and industry insiders have said the increased tax credit cap and the proposed criteria changes to the incentive program must both be approved to make California more competitive for filming.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
an hour ago
- CBS News
Trial over California National Guard deployment concludes as judge questions limits of president's authority
The trial over President Trump's deployment of thousands of National Guard troops to Los Angeles earlier this summer reached its third and final day Wednesday, as lawyers for the Justice Department and the state of California argued over the validity of Gov. Gavin Newsom's lawsuit and whether the Posse Comitatus Act — which generally bars the military from engaging in domestic law enforcement – applied to the troop deployment. Mr. Trump in June deployed 4,000 California National Guard troops and 700 Marines to Los Angeles, saying they were needed to protect federal property and law enforcement agents amid June protests against Immigration and Customs Enforcement operations. Newsom did not approve of the use of his state's Guard forces and responded with a lawsuit requesting an injunction limiting the military's role in the city. In addition to claiming the 1878 Posse Comitatus Act does not apply, Eric Hamilton, a lawyer for the Department of Justice, argued that there is no precedent for the lawsuit, for injunctive relief or money damages under the act, and that Newsom and the state of California have not suffered the harm required to sue. "It is, in fact, the federal government who is engaged in unprecedented conduct," said Deputy Attorney General Meghan Strong, representing the State of California, explaining that the government has never used the military in this way before. U.S. District Judge Charles Breyer seemed perplexed by several of the government's assertions, particularly what he called the apparent "absence of any limits to a national police force." He questioned the Justice Department's claim that the 19th century law at the center of this trial is not relevant, and the assertion that his court lacks jurisdiction to issue an injunction against the president. "So then what is the remedy?" Breyer asked Hamilton, raising the issue of presidential immunity from criminal prosecution. "You're saying there's a criminal remedy? The president can be prosecuted? You say that in light of the Supreme Court decision, the Trump decision. Isn't he immune?" "So that's it. Too bad. So sad. It's over," he added emphatically. "And that's the end of the case." California has asked Breyer for an injunction that would allow the military to protect federal property — such as courthouses and ICE facilities — but block it from continuing the support for immigration enforcement operations, which the state's lawyer called an "unlawful military crusade." "The constitution and the law and the facts are on Governor Newsom's side," said Josh Kastenberg, a professor at the University of New Mexico Law School. "But that doesn't mean he's going to win. Ever since World War II, the courts have embraced this military deference doctrine, which really is presidential deference in matters of military command and control." "We're going to see federal officers everywhere if the president determines that there's some threat to the safety of a federal agent," Breyer said to Hamilton. "And it's his determination. Not mine, it's his. That's what you're saying. That's what the law is." Hamilton said that wasn't "quite what I'm saying." He asserted the troops are not enforcing federal law, but providing protection, and that it is lawful for guardsmen and marines to provide protection for federal buildings – the one point he agreed with California's attorney on. But, he argued, there is no distinction between protecting federal property and protecting federal law enforcement working out in the field. Breyer pointed out that federal employees "are everywhere." The judge further questioned why any National Guard members remain in Los Angeles, and expressed concern about the justification for continued operations. Hamilton testified that 300 guardsmen remain, a 90% reduction in the force. Strong countered that it is still a significant number of soldiers, and certainly enough to violate the law. "Thank goodness for the National Guard, but why is the federalized National Guard still in place?" asked Breyer. "What's the threat today? What was the threat yesterday?" "I go back to the thing that I'm really troubled by: What limiting factors are there to the use of this force?" he said, "Once you have a force in place, and maybe legitimately do so, and the threat that gave rise to the force in that place subsides … how does one look at this national police force that goes out of where the threat was and starts executing other laws?" Breyer appeared to take issue with the Justice Department's argument that the Posse Comitatus Act does not apply, noting that a key witness, Major General Scott Sherman – who was at one point the commanding general of the Guard task force in Los Angeles – had testified that the troops were trained to act within the bounds of that law. "Then why is it the excellent Major General sought assurance that the Posse Comitatus Act was followed?" said Breyer. "Why did I spend a day looking at slide after slide, and regulation after regulation, and reports after reports on conduct of the soldiers to ensure that they were in compliance with the Posse Comitatus Act if the Posse Comitatus Act is irrelevant?" Strong argued that all of the Department of Defense's leaders agreed that the Posse Comitatus Act applied to the Task Force 51 troops in Los Angeles. She said they substituted the word "protection" for "security" when describing the troops' activities because they knew that "security" would violate the act. She asserted that the secretary of defense had released a memorandum invoking a constitutional exception to the Posse Comitatus Act, and affirmatively instructing soldiers to engage in activities that violated it — but the memo was issued after those activities had taken place. On Tuesday, Sherman testified that he was advised of a "constitutional exception" that enabled the troops to conduct certain activities that would normally violate the Posse Comitatus Act. Strong called this an attempt by the Department of Defense to justify their actions after the fact that "itself reveals a knowledge and awareness of their violations." The federal government is "disregarding the law, and so we need show nothing more than that," said Strong. She further argued that the Constitution seeks to make sure the president cannot control a standing army the way the king had in 1776. She said that it would deny the basic principles of federalism for the state to have "no legal recourse to challenge the conduct of these troops." "If you look at the plain language of the Posse Comitatus Act, and the fear of standing armies that existed at the time of the Constitution," Kastenberg said. "...One of the biggest issues in the state conventions and in the framing of the Constitution to begin with was to significantly curtail the president's authority over the standing army, and keep the standing army very small." Breyer did not give a timeline for his ruling, stating at the end of the day, "I will decide the case as soon as I can decide the case."Joe Walsh contributed to this report.
New York Post
an hour ago
- New York Post
Beto O'Rourke slams Trump admin, compares 2025 America to 1933 Germany
Former Texas Rep. Beto O'Rourke remarked how he 'can only imagine the history books' that will be written about the people of 2025, and likened it to 1933 Germany on Wednesday. The Democrat appeared with Gov. Gavin Newsom, D-Calif., on the governor's podcast 'This is Gavin Newsom,' where he commented on Texas Attorney General Ken Paxton investigating his Powered by People PAC for allegedly violating the law by assisting Texas state Democrats' travel out of the state to avoid a quorum during a redistricting standoff. Advertisement O'Rourke lauded the efforts of the Texas Democrats, calling them some of the 'very last lines of defense' of democracy. By contrast, he predicted Republicans, and by extension, the Trump administration, would be remembered similarly to the rise of the Nazi Party in Germany. 'I can only imagine the history books written 100 years from now looking at the people of 2025,' O'Rourke said. 'It's the way, you know, you and I when we were in school, we're looking at the people in Germany in 1933. That guy's named chancellor in January of that year. In 53 days, he has destroyed German democracy.' Democrat Beto O'Rourke speaks alongside elected officials gathered for a rally ahead of a public hearing on the proposed congressional redistricting on Saturday, July 26, 2025 in Houston. Houston Chronicle via Getty Images Advertisement He continued, 'The parliament or the congress, their legislature, passed these enabling laws just like the Republicans are doing in Congress today that said anything you want, you go out and do it. And he goes from being this buffoonish, clownish thug who can barely hold power to the undisputed master and dictator of the German people. And I know this s— doesn't repeat, but it sure as hell rhymes.' O'Rourke has frequently compared President Donald Trump and his administration to Adolf Hitler and the Nazi Party. In 2019, O'Rourke attacked Trump's family separation policy at the border and accused him of calling all immigrants an 'infestation.' 'Now, I might expect someone to describe another human being as an infestation in the Third Reich. I would not expect it in the United States of America,' O'Rourke said. O'Rourke made his comments on California Governor Gavin Newsom's 'This is Gavin Newsom' podcast. Youtube/This is Gavin Newsom Advertisement He defended his comments days later saying, 'Calling human beings an infestation is something that we might've expected to hear in Nazi Germany… Describing immigrants — who have a track record of committing violent crimes at a lower rate than native-born Americans — as rapists and criminals. Seeking to ban all Muslims — all people of one religion — what other country on the face of the planet does that kind of thing?' In 2021, O'Rourke also warned the US could become Nazi Germany within 10 years despite Trump losing the 2020 election. Fox News Digital broke the news earlier that day that Sen. John Cornyn, R-Texas, has called for the Justice Department to also investigate O'Rourke's PAC for potentially violating the law by raising funds for Texas Democrats fleeing the state.
Yahoo
2 hours ago
- Yahoo
Gov. Newsom trolls President Trump by mimicking his all-caps style
SAN FRANCISCO (KRON) — Governor Gavin Newsom and his press office are mimicking President Donald Trump's flamboyant writing style on social media this week by penning posts with all capital letters, self-praising declarations, and condescending tones. The governor's X page proudly declared that Newsom is 'THE MOST LOVED & HANDSOME GOVERNOR' in America. In another X post, the governor claimed that many people refer to Trump as 'President Donald 'Taco' Trump,' characterized Trump as a 'criminal,' and torpedoed 'MAGA trolls' as 'pathetic and weak.' Newsom's new writing style was unleashed in the middle of a congressional map re-drawing battle between liberal blue California and conservative red states. Newsom gave a 24-hour deadline Tuesday for Trump to abandon efforts to draw new congressional maps in Texas that would help Republicans pick up more U.S. House of Representatives seats in the 2026 midterm election. The governor's press office wrote on X, 'FINAL WARNING DONALD TRUMP — MAYBE THE MOST IMPORTANT WARNING IN HISTORY! STOP CHEATING OR CALIFORNIA WILL REDRAW THE MAPS. AND GUESS WHO WILL ANNOUNCE IT THIS WEEK? GAVIN NEWSOM (MANY SAY THE MOST LOVED & HANDSOME GOVERNOR) AND A VERY POWERFUL TEAM. DON'T MAKE US DO IT!!! THANK YOU FOR YOUR ATTENTION TO THIS MATTER.' On Wednesday, the governor said Trump missed his deadline by failing to respond to Newsom's demand letter. As a result, the governor announced he will move forward with his plan to counteract Trump's plan by re-drawing California's congressional maps in a way that helps Democrats win more seats for the 2026 midterms. Newsom said California's new maps will pave the way for Republicans losing control over the U.S. House. Newsom borrowed key words often used in Trump's speeches for his follow-up X post, writing, 'DONALD 'TACO' J. TRUMP … MISSED A SIMPLE DEADLINE — SOMETHING HE HAS OFTEN DONE WITH HIS MANY FAILED BUSINESSES — NOW CALIFORNIA WILL 'FIRE' HIM WITH NEW, 'MORE BEAUTIFUL MAPS.' HIGHLY ANTICIPATED, 'HISTORIC' PRESS CONFERENCE WITH YOUR FAVORITE GOVERNOR GAVIN CHRISTOPHER NEWSOM!!!!' The governor signed his posts with his full name's initials, 'GCN.' Changing congressional maps to ensure one political party's victory over another is called gerrymandering. President Trump is calling on Texas to blatantly carry out gerrymandering so that Republicans retain control of the House. Trump was previously banned from X's platform while he had millions of followers and the platform was still named Twitter. In 2021, Twitter said it locked Trump's account because of his tweets rejecting presidential election results after he lost re-election. The New York Times described Trump's post-election tweets as 'inaccurate and inflammatory.' Billionaire Elon Musk bought Twitter in 2022, changed its name to X, allowed Trump to return to the platform, and moved the company's headquarters out of San Francisco. Trump now uses Truth Social, which he launched in 2022, as his primary social media platform. In a Wednesday Truth Social post, the President wrote, 'Wow! Highest polling Republican President in HISTORY! Thank you.' He also wrote about the media's coverage of his meeting with Russian President Vladimir Putin. Trump wrote, 'Very unfair media is at work on my meeting with Putin. Constantly quoting fired losers and really dumb people like John Bolton, who just said that, even though the meeting is on American soil, 'Putin has already won.' What's that all about? We are winning on EVERYTHING. The Fake News is working overtime. If I got Moscow and Leningrad free, as part of the deal with Russia, the Fake News would say that I made a bad deal! But now they've been caught. Look at all of the real news that's coming out about their CORRUPTION. They are sick and dishonest people, who probably hate our Country. But it doesn't matter because we are winning on everything!!! MAGA.' The President did not respond on Truth Social to Newsom's congressional map demands. Newsom said he will hold a news conference later this week. He wrote on X Wednesday afternoon, 'TREMENDOUS WORK IS BEING DONE. DONALD TRUMP (THE CRIMINAL PRESIDENT) GET READY FOR THE MOST BEAUTIFUL PAYBACK YOU'VE EVER SEEN!!! COULD BE THE WORST DAY OF YOUR LIFE AS YOUR PRESIDENCY ENDS (DEMS RETAKE CONGRESS!). AMERICA WILL BE LIBERATED — 'LIBERATION DAY' MANY ARE CALLING IT!!! THANK YOU FOR YOUR ATTENTION TO THIS MATTER! — GCN.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
