Newsom proposes raising California film tax credits to $1 billion

California Gov. Gavin Newsom proposed expanding the film and television tax credit program from $750 million to at least $1 billion annually and extending it through 2040. The same day, he appeared at a rally in Los Angeles with Kamala Harris.

California Gov. Gavin Newsom on Monday proposed expanding the tax credit program for film and television production from the current $750 million to at least $1 billion annually. California officials said it would become the largest capped-budget program of its kind in the United States.

The proposal includes credits for compensation paid to key creative personnel, $100 million for independent productions, incentives for companies that film more than one project in California, and an extension of the program through 2040.

Губернатор Калифорнии Гэвин Ньюсом (архивное фото)

Last year, at Newsom's initiative, the annual credit allocation was increased from $330 million to $750 million, totaling $3.75 billion over five years through 2030. “California created the modern entertainment industry; we are the entertainment capital, and we will keep it here,” the governor said.

Newsom also renewed his call for Congress to pass legislation by the end of the year to revive the film, television and entertainment industry, known as MPTERA. He previously backed a bill providing a 20 percent federal tax credit for film and television that could be combined with state incentives.

That same day, Newsom and former Vice President Kamala Harris appeared together in Los Angeles at a rally for California gubernatorial candidate Xavier Becerra. Both politicians are considered possible presidential candidates in the 2028 election.