Governor Newsom Signs $750 Million Film and TV Tax Credit Expansion, More Than Doubling Funding From $330 Million

California lawmakers have approved Governor Gavin Newsom's plan to expand the state's Film and Television Tax Credit Program, increasing its annual funding from $330 million to $750 million. The measure, passed by a wide margin in the Democratic-led legislature, aims to restore film and TV production jobs that have been moving to other U.S. cities and overseas. The California Film Commission estimates the expansion could bring back between 4,400 and 5,500 production jobs.

This legislative action is part of a broader budget agreement that also includes scaling back free health care for undocumented immigrants. Governor Newsom emphasized the importance of the tax credit in maintaining California's status as the birthplace and continuing home of film and television production. The expanded tax credit is expected to support both major studios and independent productions, providing economic benefits to working Californians, small businesses, and communities involved in the entertainment industry. The legislation was signed into law in early July 2025, with Newsom publicly announcing the $750 million tax credit increase and highlighting the competitive challenges California faces in retaining its film industry.