California rolls out red carpet for new film, TV tax credit program

BURBANK, Calif. (CN) — The spotlight shone Wednesday in California on an expanded, $750 million tax credit for the TV and film industry — a program intended to draw back productions that have fled the Golden State in recent years.

A cast of local and state officials, including Governor Gavin Newsom, hailed the recent passage of a budget trailer bill that increases the tax credit from $330 million. They said it will keep productions, and the jobs they bring, in the state.

It’ll also help those who spend their careers behind the scenes.

Joining the press conference, “The Pitt” actor Noah Wyle mentioned a special effects coordinator on his show, Rob Nary. Nary, his father and grandfather shared the same career, with the latter working on “The Three Stooges.”

“This city has been growing talent for decades and decades and decades,” Wyle said.

Newsom said the state had essentially put up its feet and taken the industry for granted, leading to other states and countries starting to chip away at California’s industry dominance. The governor mentioned Louisiana and New Mexico, pointing to tax incentives provided by New York. Newsom said no one anticipated that states like Georgia would commit to the long haul of drawing away California productions to the Peach State.

California already had a tax credit program. The most recent version lasted for five years and expired Monday. The state needed an updated version if it was to compete, officials said.

“We were playing in the margins,” Newsom said. “We weren’t interested in failing more efficiently.”

The new program offers $750 million a year in tax credits through fiscal year 2029-30.

Newsom’s office said 16 new TV shows have received approval under the program’s last three application windows. Those are expected to lead to about 6,500 cast and crew working over 1,300 filming days in California. Together, those shows should draw $1.1 billion in spending.

The latest application period for the program starts Monday.

Some version of the program has existed since 2009. Over the years, it’s generated over $27 billion in economic activity, supporting over 200,000 jobs.

The new program, which Newsom’s office called one of the largest capped incentive programs in the country, will keep prioritizing workforce diversity while offering more funding for career training and production safety programs.

“California is where filmed entertainment was born, and with this expansion, we’re making sure it stays here,” Newsom said in a statement. “We’re not just investing in productions and soundstages — we’re investing in middle-class careers, small businesses and the communities that power this iconic industry.”

A fellowship of officials praised the program’s passage.

Burbank Mayor Nikki Perez recalled childhood rides with her father, a teamster, as he drove around town for his job, like collecting flowers for a production.

“We live and breathe storytelling here,” she said.

The executive director of the California Film Commission, Colleen Bell, called the expanded tax credit program a bold, strategic move that showcases the state’s values. She added that the program will bring more jobs to the state and keep storytelling where it belongs.

“We know the world is watching what we do,” Bell said.

Assemblymember Rick Chavez Zbur, a West Hollywood Democrat, said the $750 million tax credit program wasn’t just a number, but instead a lifeline. However, he added that more is needed.

Zbur, along with Santa Monica Democratic state Senator Ben Allen, is the author of Assembly Bill 1138, a seperate bill that tweaks the program in several ways. It’s passed the Assembly and awaits a vote on the state Senate floor.

Changes to the program include broadening the definition of a qualified motion picture, making more productions eligible for the tax credit. It also would ensure that a TV series, relocating or new series that previously received a credit would continue to get credit under the new program, unless they don’t request one.

“This is a big part of that renewal,” Newsom said. “This is a big part about LA rising.”