California Aims to Revitalize Film Industry with Major Tax Credit Boost

Governor Gavin Newsom proposes to expand the state's film and TV tax credit program to $750 million annually to counter production decline.

The proposed increase would more than double the current tax credit cap from $330 million to $750 million per year.
California's film and TV tax credit program faces competition from other states like Georgia, which has no cap on incentives.
Industry leaders see the expansion as a necessary step to attract productions back to California, though more changes are needed.
Critics argue that the effectiveness of such tax credits in boosting the economy is overstated and funds could be better allocated.
The proposal does not address existing limitations, such as excluding 'above-the-line' costs like actor and director salaries from tax credits.