California Governor Gavin Newsom has proposed an increase of the state’s film and TV tax credit from $750m to at least $1bn.
It would be the largest capped credit in the US and would extend until 2040.
The expansion would include credits for above-the-line talent, $100m for independent productions, and rewards for companies that commit to more than one production in California.
It comes a year after the incentive was increased from $330m to $750m, a $3.75bn investment over five years through 2030.
California has, however, continued to experience a gradual decline in production, with the agency FilmLA recently reporting a 4.8% year-on-year drop in shooting days in the third quarter.
A federal US production incentive was introduced by bipartisan lawmakers in September. Newsom also renewed his call on Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act (MPTERA) by the end of the year.
“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here,” Newsom said.
“At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry. Through this expansion, we will maintain the momentum and success of our historic expansion last year.”
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