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California legislature acts to keep film and TV production at home
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California legislature acts to keep film and TV production at home
Jun 27, 2025 2:30 PM

June 27 (Reuters) - Hollywood's home state of California

will more than double annual tax incentives for film and

television production to $750 million under a measure passed by

the Democratic-led legislature on Friday.

The increase from the current $330 million was approved as

part of a broader tax bill that is expected to be signed into

law by Governor Gavin Newsom in the coming days.

Democrat Newsom had advocated for the boost, a step to help

reverse a years-long exodus of production from California to

places such as Britain, Canada and other U.S. states that offer

generous tax credits and rebates.

Producers, directors, actors and behind-the-scenes workers

have warned lawmakers that Hollywood was at risk of becoming the

next Detroit, the automaking capital devastated by overseas

competition, if current trends continued.

Permitting data showed production in Los Angeles, the

location of major studios including Walt Disney ( DIS ) and

Netflix ( NFLX ), fell to the second-lowest level on record in

2024. California has lost more than 17,000 jobs since 2022 from

its declining share of the entertainment industry, according to

union estimates.

Producer Uri Singer said he shot three films in New York to

take advantage of its tax incentives. He received a California

tax credit to shoot his current project, a horror flick called

"Corporate Retreat," in Los Angeles.

"You can get such good cast and crew that are available that

makes shooting in L.A. financially better," he said. "Besides

that, creatively you find here anyone you want, and if you need

another crane, within an hour you have a crane."

Plus, "the crew is happy because they go home every day,"

Singer added.

Local advocates applauded California's expansion of tax

incentives, though they said more needs to be done.

Writer Alexandra Pechman, an organzier of a "Stay in LA"

campaign by Hollywood workers, called on Hollywood studios to

commit to a specific amount of spending in California to support

creative workers.

"It's time for the studios and streamers to do their part to

turn this win into real change for all of us," Pechman said.

Industry supporters also are pushing for federal tax

incentives to keep filming in the United States.

Republican President Donald Trump has offered a different

way to address the issue. Trump said in May that he had

authorized government agencies to impose a 100% tariff on movies

produced overseas. The movie tariff has not been implemented.

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