California lawmakers just passed a bill that increases the state’s film and TV production tax credit from $330 million to $750 million per year, through 2030. The bill is expected to be signed into law by Governor Gavin Newsom. This move is meant to keep more movie and television productions in California instead of losing them to other states or countries that offer bigger financial incentives.
Why California Is Losing Productions
In recent years, a growing number of productions have left California for places like Georgia, New York, Canada, and even the U.K. These locations offer better financial deals and lower costs, making it hard for California to compete. The result has been fewer jobs in the entertainment industry—Los Angeles saw its second-lowest filming levels in over 25 years in 2024, and more than 17,000 entertainment jobs were lost statewide since 2022.
Tax Credits Mean More Jobs and Local Spending
Supporters of the tax credit argue that the money spent on these incentives comes back to the state in the form of jobs and local spending. In 2025 alone, 51 projects are expected to benefit from the program, generating around $580 million in economic activity. That includes hiring nearly 6,500 cast and crew members and using local businesses for equipment, catering, transportation, and other services. The idea is that when a show or movie is filmed in California, the money stays local.
Industry Insiders and Local Creatives Are Pushing Back
Many people working in Hollywood have spoken up in favor of the larger tax credit. Producer Uri Singer said that Los Angeles offers a level of professional support—like top-tier crews and equipment—that you can’t always get in other places. There’s also a growing campaign called “Stay in L.A.,” where writers, directors, and other creatives are urging studios and streaming companies to film in California, not just because of tax breaks but because of community, infrastructure, and talent.
California Still Trails Other States
Even with this increase, California isn’t the most generous state. Georgia and New York still offer bigger or more flexible tax incentives for filmmakers. Some industry leaders want a national-level tax credit that would help all U.S. states compete globally. There’s talk of a $7.5 billion federal program being proposed, but critics are worried about how much taxpayers would have to fund it. Others argue that without strong support, California will keep falling behind.
