California and Nevada Propose Major Film Tax Credit Expansions

California aims to modernize its $750M film incentive program while Nevada debates an $80M expansion, sparking questions about economic impact.

California lawmakers introduced two bills to increase the state’s annual film and TV tax credit cap from $330 million to $750 million, aiming to compete with states like Georgia and New York.
The proposed California legislation seeks to expand eligibility to more types of productions and increase the rebate rate to retain and attract high-quality union jobs.
Nevada legislators are considering an eightfold increase to their $10 million film tax credit program, with proponents claiming it could diversify the state’s economy and create local jobs.
Critics of Nevada’s proposal argue that similar programs in other states have shown limited economic returns, with some studies revealing high taxpayer costs per job created.
California’s film industry has faced challenges from declining production levels, wildfires, and recent strikes, leading officials to emphasize the need for competitive incentives to revitalize the sector.