California, September 22, 2025

News Summary

California has expanded its film and television tax credit program, awarding $256 million to 22 television shows. This initiative aims to stimulate local production and generate economic growth, with the total subsidy now reaching $750 million. The program is projected to create around 6,500 jobs and generate approximately $1.1 billion in economic activity. With new tax credits of up to 40% for productions outside L.A., California seeks to maintain its competitive edge in the entertainment industry.

California Expands Film and TV Tax Credit Program, Awards $256 Million to Boost Local Production

California has significantly expanded its film and television tax credit program, awarding $256 million to 22 television shows in an effort to stimulate local production and foster economic growth. This expansion comes as part of the state’s budget revisions negotiated by Governor Gavin Newsom and legislative leaders in June 2023, which included a dramatic increase in subsidies to the film and video industry.

The recent budget adjustments have resulted in more than doubling the total subsidy to the film and video industry to $750 million for tax credits. This expansion is aimed at attracting producers back to California, competing against other states and countries, which have been luring away film and television productions with lucrative incentives.

Governor Newsom emphasized the necessity of these changes, stating that California must be competitive to maintain its status as the “best place” to do business in the entertainment sector. As a result of the expansion, California has seen an unprecedented nearly 400% increase in applications for tax incentives since the program’s enhancement.

The $256 million in credits are projected to generate approximately $1.1 billion in economic activity within the state and are expected to create around 6,500 jobs for cast and crew members. Most of the funded productions will take place in the greater Los Angeles area, although some are set to be filmed in other regions of California.

Expanded Incentives and Eligible Productions

The new incentives structure allows productions filmed in Los Angeles to qualify for a 35% tax credit, while those shot outside the region can receive up to 40%. In addition to the previous eligibility requirements, the list of qualified productions now includes half-hour shows, large-scale competition shows, and animated series. Noteworthy shows benefiting from these tax credits include productions from major networks and streaming platforms such as Apple TV+, Netflix, and CBS. Specific titles include “The Studio,” “Presumed Innocent,” and various new pilot productions.

Financial Implications and Local Impact

The funding allocated to these productions results in significant economic benefits, including an estimated $714 million in qualified expenditures and $413 million in qualified wages. The California Film Commission is committed to continuously re-evaluating and adjusting the structure of the tax incentive program to ensure ongoing competitiveness with other jurisdictions.

The film and video subsidy is one of multiple tax expenditures that benefit specific economic sectors or corporations, contributing to a reduction in state revenues by over $100 billion annually. In light of the state’s ongoing budget challenges, public employee unions are urging the reduction of corporate tax breaks to help manage California’s chronic deficit.

Implications for Local Economies

In addition to the statewide initiatives, local governments have been redistributing property taxes to stimulate taxable business investments. A recent report from the Legislative Analyst’s Office indicated that local governments provided about $140 million in rebate subsidies to sellers in the 2023-24 fiscal year. As cities explore various subsidies, including sales tax rebates, they continue to seek strategies to enhance local economic vitality.

This expansion of California’s film and television tax credit program, therefore, not only revitalizes the local entertainment industry but also promises significant economic returns and job creation for residents, underscoring the importance of competitive incentives in the production landscape.

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Key Features of California’s Film and TV Tax Credit Program

Deeper Dive: News & Info About This Topic

• Los Angeles Times
• Wikipedia: Film Production
• Deadline
• Google Search: California film tax credits
• New York Times
• Encyclopedia Britannica: Tax Incentive
• Variety
• Google News: California film tax incentives
• Cined

Author: STAFF HERE COSTA MESA WRITER

COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.