California Lawmakers Scramble to Protect $750 Million Film Credit as 42,000 LA Jobs Vanish
Updated
Updated · POLITICO · Aug 16
California Lawmakers Scramble to Protect $750 Million Film Credit as 42,000 LA Jobs Vanish
2 articles · Updated · POLITICO · Aug 16
Summary
California lawmakers are rushing to exempt the state’s film tax credit from Gov. Gavin Newsom’s broader corporate-credit limits before the session ends, while also trying to add standalone incentives for commercials and post-production.
The push follows a steep production slide: Los Angeles County lost more than 42,000 film and TV jobs between 2022 and 2024, and FilmLA said on-location shooting in the region fell 12.7% year over year in late July.
Newsom last year backed more than doubling the annual Film & Television Tax Credit Program to $750 million, but his newer proposal would cap usable credits at $5 million or a share of tax liability starting in 2030 unless lawmakers carve film out.
Rival states are widening the pressure. Illinois now offers a 35% base credit, a first-in-the-U.S. 5% green bonus and stacked incentives worth up to 50%, helping drive $703 million in production spending last year.
That competition is reshaping the debate beyond Sacramento, with advocates arguing California’s fight over commercials, post-production and credit rules is now about preserving Hollywood’s middle-class workforce and identity.