California Governor Gavin Newsom presented a million-dollar proposal this Sunday aimed at attracting and retaining film and television productions in the state and the city of Los Angeles, recognized as the entertainment capital of the world for being the home of Hollywood.
"It's about investing in the future of this industry," Newsom said at a press conference in Los Angeles. The proposal expands California's Film and Television Tax Credit Program to $750 million a year, more than double the current allocation.
This initiative is expected to position California as the leading state in terms of incentives for film and television production, surpassing other states like New York that offer tax benefits to the entertainment industry.
The plan needs approval from the California Legislature and would become a key driver for Hollywood, which has struggled to regain its pre-pandemic production pace and has been affected by recent strikes.
Newsom mentioned that the program's increase could take effect in July 2025 and would last for five years. Since its establishment in 2009, the Tax Credit Program has generated more than $26 billion in economic activity and has supported over 197,000 jobs for cast and crew across the state.
"We are in a position where we can afford this and we have to do it," the governor stated, acknowledging the tough competition Hollywood faces today.
