California has taken a major step to reinvigorate its entertainment industry by approving a substantial increase in its Film and Television Tax Credit Program. The new legislation boosts the annual cap to $750 million—up from $330 million—as part of a broader budget agreement awaiting Governor Newsom’s signature. This move aims to reverse a troubling trend of productions relocating to other U.S. states and countries with more attractive incentives.
Los Angeles recently experienced one of its lowest years for on-location shoots, and the state has lost more than 17,000 entertainment jobs since 2022. By expanding eligibility to include animation, sitcoms, and competition shows, and by raising credits to 35% or more for shoots in the Los Angeles area, California is making a stronger case for keeping production local.
Advocates, including industry unions and producers, hail this as a lifeline to thousands of cast and crew members and to the creative economy. Over the next few years, the added funding is expected to support hundreds of projects, create jobs, and generate hundreds of millions in economic activity across the state.
Still, some note that California’s incentives remain capped, and larger competitors like Georgia and New York offer uncapped or higher-value programs. Some worry this may not be enough to fully reverse the industry’s migration—but the upgraded credit is a significant step toward keeping the Golden State at the heart of global entertainment.