Governor Gavin Newsom wants to bring more production back to Hollywood—and the rest of the Golden State—by expanding California’s Film & Television Tax Credit Program. 

Newsom pitched his proposal to the California state legislature yesterday, explaining it would more than double the annual allocation from US$330 million to US$750 million. If approved, he says this expansion would position California as the number-one state in the US for capped film incentives, potentially generating thousands of jobs across the industry.

The program is not currently able to accommodate all productions that apply for its tax credits, says Newsom. As a result, 71% of the projects that were denied support in California between 2020 and 2024 moved their filming out of state. 

Since its launch in 2009, California’s Tax Credit Program has created nearly 200,000 jobs and generated more than US$26 billion in economic activity, with each dollar approved generating US$24.40 in national output and US$16.14 in GDP. Recent recipients include Amazon MGM Studios (which received US$25 million six months ago for Fallout season two) and Disney (which was awarded US$21.8 million last year to film The Mandalorian & Grogu).