California Gov. Gavin Newsom is proposing to more than double the state’s film and tax credit incentives.
The proposal aims to create more competition among other states and countries offering similar perks to the entertainment industry.
The big picture: The new proposal will expand the annual tax credit pool to $750 million, up from the current total of $330 million.
- Newsom announced the proposal during a news conference at a Hollywood studio, joined by Los Angeles Mayor Karen Bass and members of entertainment unions.
- The refundable credits program is set to surpass New York’s current film incentive, according to the governor.
Driving the news: California is home to the largest share of the film and TV economy in the U.S., supporting over 700,000 jobs and nearly $70 billion in wages for in-state workers.
- The proposed expansion comes as the industry continues to struggle following the COVID-19 pandemic and labor strikes, with a need to address the issue.
- The planned incentives will be included in Newsom’s January budget, with assurances that the state can afford the proposal.
What they’re saying: “California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” 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.”
