In a year when California is facing a $12 billion budget shortfall, you might think film incentives would be the first thing cut. Instead, they just got a massive upgrade.
With Friday’s final vote, the California Legislature officially locked in $750 million per year for its Film & TV Tax Credit Program, one of the biggest legislative wins for the industry in recent memory. For filmmakers, this isn’t just a political headline, it’s the difference between shooting your next project in L.A. or watching your set packs get rerouted to Georgia.
A Lifeline, Not a Corporate Giveaway
Despite what critics have long claimed, this isn’t a tax break for the Hollywood elite. It’s a jobs program, plain and simple.
“This is about an industry that is additive to California,” said Rebecca Rhine, Western Executive Director of the DGA and President of the Entertainment Union Coalition. “Hotels, coffee shops, dry cleaners, costume houses, camera rentals — the list of small businesses that rely on production is endless.”
Rhine was one of the leaders behind the Keep California Rolling campaign, which mobilized hundreds of below-the-line workers to Sacramento this year to fight for the funding. Their message was clear: this is about keeping jobs, union wages, and community economies alive in California, not bailing out billion-dollar studios.
And for once, the lawmakers listened.
What the $750M Actually Does
Let’s break this down in practical terms. Under the proposed updates (currently on their way through final approval), productions can now qualify for up to 35% in tax credits for expenditures in Los Angeles, a substantial jump from the previous 20%. There’s also a new bonus incentive that grants an additional 5% credit for shooting in areas marked as “economic opportunity zones.”
For indie filmmakers, that could mean a much easier path to financing and staying local, especially if your project brings job training and workforce development to underserved communities.
In short: California wants your production, and it’s finally willing to pay to keep it.
A Battle With National Implications
This move comes as California faces stiff competition from other states aggressively ramping up their film incentives. New York recently passed a major expansion to its tax credit program. Georgia continues to dominate big-budget production. And states like New Jersey and New Mexico are quietly building impressive slates by offering better deals and smoother approval processes.
California, for all its history and talent pool, has started to fall behind. But with this new funding, the state is sending a clear message: we’re still the capital of film, and we’re not giving up that title without a fight.
What’s Next?
There’s one final step: a vote on AB 1138, which formalizes the programmatic changes and ensures this new $750M isn’t just symbolic. That vote is expected next week and, barring any surprises, should pass easily.
If and when it does, California’s film tax credit program becomes one of the most competitive, and filmmaker-friendly, in the country.
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