California Senate Reviews Expansion of Film and TV Tax Credit Program

Proposed legislation aims to increase tax credits to 35% for Los Angeles productions, expand eligibility, and address economic competitiveness.

California lawmakers are debating a proposal to increase the annual film and TV tax credit cap from $330 million to $750 million as part of a broader economic strategy.
The legislation would raise tax credits to 35% for productions in Los Angeles and offer a 5% bonus for filming in economic opportunity zones outside the region.
New eligibility criteria include animated films, sitcoms, and large-scale competition shows with budgets of at least $1 million, while excluding reality shows, game shows, and documentaries.
Supporters argue the program will retain high-quality union jobs and counter production declines caused by competition from states like Georgia and New York.
Critics question the fiscal impact, citing concerns over whether the expanded program provides sufficient return on investment compared to other state priorities.