Newsom Proposes $750 Million Annual Film Tax Credit to Bolster California's Struggling Industry

Oct 27, 2024, 08:51 PM

California Governor Gavin Newsom has unveiled a proposal to more than double the state's annual film and television tax credit from $330 million to $750 million, including a $420 million raise, aiming to bolster California's struggling film and TV industry. Announced during a press conference on Sunday, the plan responds to pleas from the industry amid an alarming production drop and aims to prevent productions from relocating to other states like Georgia and countries like Canada, which offer substantial incentives. The proposed increase would allocate up to $3.75 billion in tax credits over five years starting in 2025. "We needed to be big and bold," Newsom said. "We can afford this, and we need to do this. This is about investing and recognizing that the world we invented is now competing against us." The proposal must be approved by California's legislature and may face challenges due to the state's projected budget deficit.