Gov. Gavin Newsom is proposing another major expansion of the state’s incentive program as the 2026 midterm elections approach.
• Newsom wants to raise annual film and television tax credits from $750 million to at least $1 billion.
• The proposal is designed to keep more productions in California, where studios face competition from states and countries offering lucrative incentives.
• Supporters say the program helps sustain jobs for actors, crew members, production companies and related businesses.
• The expansion would represent one of the largest increases in state support for the entertainment industry in recent years.
• The proposal must still move through the Legislature, where lawmakers will weigh its economic benefits against the cost to state revenues.
California has long been the center of the U.S. entertainment industry, but production has increasingly shifted elsewhere. Newsom has made restoring the state’s dominance a policy priority, arguing that film and television generate broad economic activity beyond studios and soundstages. Critics may question whether the credits produce enough public benefit to justify the expense, particularly as California faces ongoing budget pressures.