Gavin Newsom proposes expanding California film tax credit to one billion dollars

California Governor Gavin Newsom proposed expanding the state film and television tax credit program to at least one billion dollars annually on November 2, 2026. The Wrap, Variety, and The Hollywood Reporter all reported that the proposal would increase the current annual cap from 750 million dollars to at least one billion dollars. The proposal comes on the eve of the 2026 midterm elections as California prepares to elect his successor. [2][3][4]

According to The Wrap, the expansion includes allocations for above the line talent, 100 million dollars reserved for independent productions, and a 5 percent boost in tax credits for companies that commit to more than one project. The Hollywood Reporter noted that recent credits under the existing program included 24.2 million dollars for The Pitt, 17 million dollars for a Snoop Dogg biopic, 11.4 million dollars for Last Friday, and 7 million dollars for an Ang Lee drama. [2][4]

The Wrap and The Hollywood Reporter reported that Newsom is also urging Congress to pass the bipartisan Motion Picture, Television, and Entertainment Revitalization Act by the end of the year. Gavin Newsom has served as the 40th governor of California since 2019. [2][4][8]

Deadline reported that the Entertainment Union Coalition, which represents organizations including SAG-AFTRA, IATSE, DGA, WGAW, Teamsters, AFM, and LiUNA, thanked Newsom for his proposal. Deadline added that union leaders expressed concern over whether his successor will continue the program commitment. [1]