California Boosts Film Tax Credit to $1 Billion Through 2040

California plans to boost its film and TV tax credit from $750 million to at least $1 billion.

Governor Gavin Newsom has proposed this increase, making California’s incentive the largest capped credit in the United States and extending it through 2040. This move aims to counteract a 4.8% year-on-year decline in shooting days and sustain the state’s position as the entertainment capital.

The proposal includes $100 million earmarked for independent productions, credits for above-the-line talent, and additional rewards for companies that commit to multiple projects within California. This builds on last year’s expansion from $330 million to $750 million and follows a recent federal production incentive totaling $3.75 billion over five years. Newsom urges Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act by year’s end to bolster the industry further.

While Montana is not directly mentioned, the state’s evolving role in film and television production could be influenced by California’s shifting incentives. Montana businesses might see new opportunities or competitive pressures depending on how productions respond to these enhanced tax credits, especially given Montana’s appeal for location shoots and cost considerations.

California governor proposes $1bn film and TV tax credit
By Ellie Calnan, KFTV