California lawmakers have approved more than $750 million annual funding plans that are more than twice the state’s tax credit program, but official votes are still a few days away.
The current annual funding increase from $330 million was first proposed by Governor Gavin Newsom in October last year in response to the ongoing poor production that has affected the state since the 2023 Hollywood strike.
However, the $750 million figure is not included in the 2025-2026 state budget approved by lawmakers earlier this week. Instead, this number had to be introduced into “trailer bills” in the budget. The final vote on that bill will not arrive until later this week, but lawmakers are now understood to have reached budget contracts that include boosts.
Once the budget is finally approved, the funding increase will come into effect on July 1, along with the so-called 4.0 version of California’s Film & Television Tax Credit Program. They will also be given an invoice that will increase the credits offered to 20% or 25% or 35% under the program, and are expected to open the program on animated features and some types of television.
As state budget negotiations have come down to the wires in recent weeks, filmmakers have been lobbying to ensure funding increases, with Patty Jenkins and Jonathan Nolan visiting the state’s capital, Sacramento, to talk to legislators.
The large-scale funding growth aims to make California’s tax incentive programs more competitive with those offered in states such as Georgia and New York, as well as overseas locations, including the UK.
When he first proposed an increase, Newsom said: “California is a global entertainment capital, rooted in decades of creativity, innovation and unparalleled talent. By expanding this program, we will maintain production here, produce thousands of good jobs, and strengthen the key link between our community and the state’s iconic film and television industry.”
News that the increase was approved was first reported Variety.
(TagStoTRASSLATE) Funding News (T) Production (T) Production Incentive
