Record Number of Productions Receive Tax Incentives
California is making an aggressive push to keep film and television productions within the state by awarding tax credits to a record 51 projects. This initiative comes at a time when the industry is experiencing a production slowdown due to an ongoing battle among states and countries to offer the most attractive incentives for filmmakers.
According to the California Film Commission, this marks the highest number of projects selected in a single round of the state’s film and TV tax credit program. The selected productions are expected to employ approximately 6,490 cast and crew members, generating nearly $347 million in wages and an estimated $578 million in economic activity.
Governor Gavin Newsom emphasized California’s legacy as the heart of the entertainment industry. “While other states try to chase California’s on-screen success, everyone knows the Golden State is the entertainment capital of the world – built through decades of innovation and hard work,” Newsom said in a statement. He highlighted the importance of the program in keeping production within the state, sustaining thousands of jobs, and supporting local businesses that rely on a thriving entertainment sector.
Independent Films Dominate as Major Studios Look Elsewhere
Of the 51 projects awarded through the Film and TV Tax Credit Program, the majority are independent films. This reflects a growing trend where large-scale productions are choosing states or countries with more competitive incentives, such as Georgia and the U.K. According to the California Film Commission, 46 of these projects are independent films, many of which will be filmed in locations outside Los Angeles, including Contra Costa, Oakland, Ojai, Merced, and San Diego Counties.
Headlining the list of recipients is an upcoming untitled project from the Oscar-winning directors of Everything Everywhere All At Once, Daniel Kwan and Daniel Scheinert. NBCUniversal is expected to receive $20.8 million in tax credits for this production. Other major studio films awarded incentives include Twentieth Century Studios’ Business Women ($5.7 million in credits) and Warner Bros.’ Cut Off ($10 million in credits).
Independent films benefiting from the program include Animals, Not Her, TBTN, Phantom, A Bobby Thing, and Reenactment. California Film Commission director Colleen Bell underscored the importance of these incentives in the wake of production disruptions caused by recent wildfires in Los Angeles. “These disruptions have impacted employment for thousands of cast and crew members, affecting everything from production schedules and financing to housing and location access,” she explained. “Now more than ever, this program is a critical tool to help productions recover and keep investment within our state.”
State Pushes to Expand Film Incentives Amid Industry Shifts
The push to retain productions in California comes at a critical moment, as the state faces increasing competition from other regions. In an effort to revitalize the industry, Governor Newsom has proposed doubling the annual cap on the state’s film and TV tax incentive program from $330 million to $750 million.
While details of the expansion are still being finalized, the move reflects an urgent effort to reverse the trend of productions relocating elsewhere. The impact of last year’s Hollywood strikes further emphasized the need for financial incentives to keep the industry stable.
Filmmakers like Kwan and Scheinert have credited the state’s tax incentive program for enabling them to produce their work in California. “We are LA filmmakers, with very dear LA friends, who happen to be some of the greatest creative talents we’ve worked with,” the duo stated. “On Everything Everywhere All At Once, we received the California tax credit, and had we not, it would have been utterly impossible to make that film.”
As the state moves forward with plans to expand the Film and TV Tax Credit Program, industry professionals and local businesses remain optimistic that these incentives will strengthen California’s status as the hub of the entertainment world.
