California Governor Proposes $750 Million in Annual Film Tax Credits

Responding to pleas from California’s film industry, which has struggled to rebound from labor unrest and industry disruption, Gov.Gavin Newsom on Sunday announced a proposal to more than double the size of the state’s film tax incentive program to $750 million annually.If the proposal is approved by the State Legislature, California would offer more money to entice film productions than any state except Georgia, which provides unlimited tax credits.

California’s existing program is capped at $330 million annually.The increase would go into effect on July 1, 2025.“California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent,” Mr.

Newsom said in a statement.“Expanding this program will help keep production here at home, generate thousands of good-paying jobs, and strengthen the vital link between our communities and the state’s iconic film and TV industry.”In recent weeks, state economic development officials and entertainment executives in Los Angeles have publicly expressed concern over the persistent slump in film production, begging officials to do more to keep film shoots in the state.Over the past 20 years, states have aggressively wooed Hollywood, offering movie and television productions more than $25 billion in filming incentives, according to a survey by The New York Times.

Thirty-eight states offer some form of incentive, including Georgia, which has extended more than $5 billion in film tax credits since 2015, and New York, which has provided at least $7 billion in credits....