California lawmakers have enacted into law a bill originally proposed by the state’s Governor Gavin Newsom that more than doubles the tax credit programme’s annual allocation to $750m.
The increase from $330m comes into effect on July 1 and means California now offers the third highest incentives package behind New York and Georgia, which is uncapped.
Industry bodies and activists have been fighting for an enhanced suite of incentives in light of attractive offerings elsewhere in the US and around the world and a drop in local film and television shoots since industry strikes hobbled Hollywood in 2023.
Rebecca Rhine, western executive director of Directors Guild Of America and president of Entertainment Union Coalition, hailed Friday’s development and the “courageous leadership by Governor Newsom”, adding that the activism of its members was “the core driving force in our fight to retain and bring back good industry jobs to our state”.
Rhine continued: “We call on the studios to recommit to the communities and workers across the state that built this industry and built their companies.”
The measure was approved as part of a ‘trailer bill’ added to the state’s 2025-2026 budget that was passed earlier this week. The increased allocation will come into effect on July 1 alongside version 4.0 of California’s Film & Television Tax Credit Programme.
Next week, the California legislature will vote on programmatic changes in a separate bill (AB 1138) that proposes to boost tax credits for individual projects from 20% to 35%, and expand qualifying projects to include animated features, shorter television shows, and some unscripted television. The deadline for that measure to receive approval is July 7.
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