Newsom Proposes $1 Billion a Year for California's Film and TV Tax Credit
Governor Gavin Newsom wants California to spend at least $1 billion a year on its film and TV tax credits, up from $750 million. He announced the proposal on November 2, 2026, the eve of the US midterm elections, according to Variety.
A tax credit works as a payback on money a production spends in the state. Productions that film in California can claim a share of their spending back against their tax bill. The proposal would also extend eligibility to above-the-line spending, meaning the top creative costs such as actors' salaries.
Independent productions, which are films made outside the big studio system, would get $100 million a year under the plan. That is $26 million more than the current program sets aside for them. Companies that commit to at least two distinct qualifying productions in California would receive a 5% boost to their credit.
The plan would also push back the program's expiry date, known as its sunset, from five years to 10, running through 2040. Newsom called on Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act, known as MPTERA, by the end of 2026. That federal bill would set a 20% base tax credit for qualifying film, television and visual effects (VFX) projects produced in the US.
The state has been raising its support quickly. The credit rose from $330 million to $750 million in the prior year. Newsom's office says the $750 million credit has resulted in $8.24 billion in direct production spending. That includes $5.3 billion in qualified expenditures and $3.2 billion in qualified wages, supporting more than 43,000 cast and crew jobs.
Recent announcements from the governor's office show how the money is being allocated. On October 7, 2026, the office announced 35 new films coming to California under the expanded program, with an anticipated $1.08 billion in spending. In July, it said 41 new projects had been awarded in the first year of the expanded credit, which it projected would bring $6.6 billion in economic impact.
In September, Newsom also announced new legislation creating a separate credit to support post-production work. Post-production covers the editing, sound, colour and effects stages that happen after filming wraps.
For crews, the practical question is where the cameras roll. A credit that runs longer and covers more of a production's budget gives studios and independent makers a clearer picture when they plan a shoot. The proposal is not law yet, and it will need further approval before any of these changes take effect.
