In a move to strengthen California’s entertainment industry, Gov. Gavin Newsom, D, has announced a proposal to significantly expand the state’s film and television tax incentives. During a news conference in Hollywood, Newsom revealed plans to more than double the annual tax credit pool from $330 million to $750 million.
Newsom emphasized that this initiative aims to enhance California’s competitiveness against other states and countries offering similar incentives.
“This is about jobs, this is about investment and recognizing that the world we invented is now competing against us,” Newsom said.
The governor was joined by Los Angeles Mayor Karen Bass and representatives from various entertainment unions, including the Directors Guild of America. Together, they stressed the importance of supporting an industry that generates over 700,000 jobs and nearly $70 billion in wages for Californians.
Newsom’s proposal would surpass New York’s film incentives, and Georgia also offers an attractive tax incentive.
The industry is still recovering from the impacts of the COVID-19 pandemic and recent labor strikes. Newsom referred to the industry as being on “life support.”
The proposed expansion will be part of Newsom’s budget plan in January. He stated that California is in a position to afford this investment, while critics argue that subsidizing entertainment comes at the expense of other budget items, such as education and healthcare.
