Written by Kianna Best on Jul 3, 2025. Posted in Incentive News

California Reclaims Hollywood’s Spotlight with USD 750 Million Film & TV Tax Credit Expansion

In a major move to revive and secure California’s position as the world’s entertainment capital, Governor Gavin Newsom has unveiled a historic expansion of the state’s Film and Television Tax Credit Program. The new plan more than doubles annual funding—from USD 330 million to USD 750 million, and introduces refundable credits for the first time. Sixteen major TV projects have already committed to filming in the state, generating over USD  1.1 billion in local economic activity and creating nearly 6,700 cast and crew jobs.

 

 

Governor Gavin Newsom announced a groundbreaking overhaul of California’s Film and Television Tax Credit Program today, unveiling an expanded USD 750 million initiative designed to bring back productions that have drifted to other states or countries in search of better financial incentives. Standing at Sunset Las Palmas Studios in Burbank, Newsom emphasised the state’s commitment to revitalising its foundational industry and called the expansion a "milestone moment" in California’s economic and cultural future.

 

This new iteration of the program—dubbed “Program 4.0”—not only boosts the budget but introduces refundable tax credits for the first time in the program’s history. According to the Governor’s office, the update is expected to increase film-related employment in California by 50%, offering a critical advantage over competing states like Georgia and New York.

 

As part of the announcement, Newsom revealed that 16 television productions have already been approved to film in the Golden State under the updated program. Among these are high-profile returning series such as HBO Max’s The Pitt, Hulu’s Paradise, and CBS’s NCIS: Origins, as well as Prime Video’s Mr. & Mrs. Smith, which is relocating production to California. Combined, these projects are projected to generate approximately USD 1.1 billion in spending and support nearly 6,700 local jobs.

 

Newsom framed the expansion as a direct response to "runaway production"—the long-standing issue of film and television projects leaving California due to more competitive tax credits offered elsewhere. According to state data, nearly 70% of projects denied credits in previous years ultimately filmed outside California. With the enhanced incentives now in place, state leaders hope to not only retain homegrown productions but also bring back those that have left.

 

“California is where filmed entertainment was born, and with this expansion, we’re making sure it stays here,” said Newsom. “We’re not just investing in productions and sound stages—we’re investing in middle-class careers, small businesses, and the communities that power this iconic industry.”

 

Los Angeles Mayor Karen Bass, who joined Newsom at the announcement, highlighted the broader economic ripple effects of the entertainment sector, noting that local businesses, ranging from florists to carpenters to caterers, depend on film production for their livelihood. “This industry doesn’t just create stars; it sustains our communities,” Bass said.

 

“We are thrilled that we are going to be able to continue shooting our second season of Paradise in Los Angeles, thanks in no small part to California’s film and TV tax credit,” said Paradise creator, executive producer and Showrunner Dan Fogelman, and star and executive producer Sterling K. Brown. “We’ve been lucky enough to shoot in Los Angeles for the majority of our careers – it is home to the best crews in the world and allowing series to shoot (and remain) in L.A. provides consistent work for countless craftspeople, allowing us all to remain in town with our families and loved ones.”

 

Since its inception in 2009, California’s film and TV tax credit program has been credited with generating over $27 billion in direct spending and supporting more than 209,000 jobs. Program 4.0 builds on that foundation by maintaining existing diversity, equity, and workforce training requirements, and also launching a new “Safety on Set” pilot to ensure better working conditions across productions.

 

“This expansion is a powerful investment in California’s future, strengthening the state’s position as the global leader in content creation, fuelling job growth and supporting thousands of small businesses that rely on a thriving production industry,” said Colleen Bell, director of the California Film Commission. “This program isn’t just about keeping cameras rolling — it’s about sustaining careers, building opportunity and ensuring that the economic and cultural benefits of filmmaking stay right here in the Golden State.”

 

Looking ahead, the California Film Commission is preparing to open its next round of applications. Television projects can begin applying 7–9 July, while feature film submissions open 25–27 August. Updated guidelines will be released in the coming weeks to reflect the expanded program.