Governor Newsom Signs $750 Million Film and TV Tax Credit Expansion More Than Double Previous Funding

California lawmakers have approved a substantial expansion of the state's Film and Television Tax Credit Program, increasing the annual funding from $330 million to $750 million. This legislative move, championed by Governor Gavin Newsom and passed by the Democratic-led legislature, aims to revitalize the state's film and television production industry by making California more competitive and retaining production jobs that have been migrating to other U.S. cities and overseas. The increase more than doubles the previous cap and is expected to support between 4,400 and 5,500 production jobs.

The expanded tax credit program will also benefit independent productions and is part of a broader budget agreement that includes scaling back free healthcare for undocumented immigrants. Governor Newsom emphasized that the expansion reflects a commitment to keeping California as the home of film and television, supporting working Californians, small businesses, and local communities tied to the industry. The legislation, known as AB 1138, received wide support from labor and industry partners, including SAG-AFTRA, and is seen as a critical effort to preserve Hollywood's economic and cultural significance. The governor officially signed the bill into law in early July 2025, marking a renewed push to attract productions back to the Golden State and generate an estimated $1.1 billion in economic activity from 16 TV shows expected to film in California.