Newsom seeks billion dollar film credit

California Governor Gavin Newsom proposed a major expansion of the state’s Film and TV Tax Credit Program on November 2, 2026. The plan aims to raise annual funding from $750 million to at least $1 billion. This move comes as production levels in the state continue to fall despite recent increases in support.

The governor’s office describes the current program as the largest capped film and TV tax credit in the United States. The proposed expansion would extend the tax credit through 2040, effectively doubling the current five-year sunset. This extension is intended to provide predictability for long-term production investment. The new structure would also introduce specific financial incentives to attract more work to the Golden State.

Key components of the proposal include expanding eligibility to cover above-the-line talent spending, such as actor salaries. This expansion is subject to appropriate funding caps. The plan also earmarks $100 million annually for independent productions, an increase of $26 million from the current program. Companies that commit to at least two distinct qualifying productions in California would receive a 5% boost in their tax credits.

Newsom cited economic benefits in a statement announcing the program. He said, “California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here.” He noted that at least $1 billion in tax credits means more investment flowing into the economy. He added, “But states can’t shoulder the cost alone, which is why I am calling on Congress to back up an expanded tax credit by passing national film and TV tax credit legislation already on the table.”

The state previously increased its film and TV tax credit from $330 million to $750 million last year. According to the governor’s office, the $750 million credit has resulted in $8.24 billion in direct production spending to date. This total includes $5.3 billion in qualified expenditures and $3.2 billion in qualified wages. The program has supported more than 43,000 cast and crew jobs.

Newsom also reiterated his call for Congress to pass the federal Motion Picture, Television, and Entertainment Revitalization Act by the end of 2026. The legislation, which has bipartisan support, would establish a 20% base tax credit for qualifying film, television, and VFX projects produced in the U.S.