In a major win for California’s entertainment workforce, lawmakers have officially secured $750 million in annual funding for the California Film and TV Tax Credit program, cementing Governor Gavin Newsom’s proposal into law following final budget votes from both the Senate and Assembly on Friday.
With the vote now on record — 64-1 in the Senate and 31-3 in the Assembly — the funding boost gives California’s film industry a much-needed shot in the arm amid rising competition from states like New York and Georgia.
The Entertainment Union Coalition, led by Directors Guild of America Western Executive Director Rebecca Rhine, had been lobbying hard for the increase. Rhine praised the passage, saying it affirms a commitment to union jobs and local economic impact. “This is a jobs bill, and it’s always been a jobs bill,” she said in an interview with Deadline. “This is not about a bailout. This is about an industry that is additive to California.”
The expanded funding supports more than just studios and crews. From hotels and dry cleaners to prop houses and restaurants, the legislation aims to keep California’s full ecosystem of production vendors afloat — and at home.
The tax credit expansion will allow for individual projects to receive up to 35% in qualifying tax credits for expenditures within Los Angeles, with an additional 5% discretionary bump in economically distressed areas. That’s a significant jump from the previous 20% cap, and a strong signal that California is serious about retaining top-tier productions.
While the funding is now secured, the final hurdle comes next week, when lawmakers are expected to vote on AB 1138 — a companion bill outlining the programmatic changes that will make it easier for productions to qualify, while also tying credits more directly to job creation and training opportunities.
No major opposition is expected.
For now, California’s production workers can exhale — at least for the moment — knowing that their state is finally stepping up to keep the cameras rolling.
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