Newsom signs $750M tax credit for film and TV made in California

BURBANK, Calif. (KABC) -- In an effort to boost movie projects in Hollywood, Governor Gavin Newsom went to a Burbank movie studio Wednesday to sign a $750 million film and TV tax credit.

The Industry hopes the measure will help stem the crisis in Hollywood.

L.A.-based film shoots have been fleeing California for other states and countries with considerably bigger incentives, according to industry insiders.

"2024 was the worst year on record for on-location filming in LA, except for COVID. 2025 has actually been a little worse," said Paul Audley, from FilmLA.

Newsom signed legislation that more than doubles the tax credits the state can offer to producers who choose to shoot in California. What had been a $330 million cap will now go up to $750 million.

"You've got to be competitive and now we're competitive. Not to be the cheapest place to do business - that's never been California's brand or motto going back a century. We want to be the best place," Newsom said during a press conference at the new Warner Bros. studio in Burbank.

Assembly Bill 1138 would expand the types of productions eligible for the tax credits as well as the amount of money productions would be able to collect. The bill is expected to reach the governor's desk Thursday.

"When productions shoot here in California, the money ripples through every corner café, hardware store, dry cleaners and all across our communities," said Tom Ibarra, from Reel Waste and Recycling.

Los Angeles Mayor Karen Bass applauded the new funds but also admitted that L.A. needs to work harder to attract more film shoots.

"How can we make filming easier? How can we make the permit process more streamlined? How can we make it more cost-effective to film here?" Bass said.

Experts say the new tax credits won't wipe out the competition with other states. In fact, New York still doles out more in tax incentives each year. But insiders say the fresh stream of California funds will certainly make a difference.

"We should start seeing some real impact in the last quarter of 2025, and it should be fully helping in 2026," Audley said.