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California Raises Film and TV Tax Credit Cap to $750 Million

Applications under the newly refundable $750 million credit open July 7 as California seeks to reclaim productions lost to rival incentives

Joey Chestnut won the Nathan’s Hot Dog Eating Contest for a seventh straight year.
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Overview

  • Governor Gavin Newsom signed a trailer bill on July 2 that doubles the annual cap from $330 million to $750 million and makes credits refundable
  • The California Film Commission will accept applications from July 7 under the expanded program
  • State projections estimate the $750 million investment will support about 6,500 cast and crew jobs and generate roughly $664 million in economic activity
  • AB 1138, pending final legislative approval, would extend the incentive to animation, sitcoms and competition shows and increase credit rates for Los Angeles and out-of-zone productions
  • Entertainment unions and industry leaders praise the expanded credits for drawing productions back to California while critics question the program’s long-term economic return