Gov. Gavin Newsom Proposes to More Than Double California’s Film and Tax Incentives

California Governor Gavin Newsom Proposes to Double State’s Film and Tax Incentives

California Governor Gavin Newsom recently announced a groundbreaking proposal to more than double the state’s film and tax incentives, aiming to attract more film and TV production and create jobs in the industry. Newsom made this announcement on Sunday during a news conference at a Hollywood studio, where he was joined by Los Angeles Mayor Karen Bass and industry representatives.

Significant Expansion of Tax Incentives

The proposal, which Newsom calls an “investment in our future,” aims to expand the annual tax credit pool to $750 million. Currently, the state offers $330 million in tax incentives, but under the new proposal, the state plans to surpass New York’s current film incentive pool.

Strategic Competition in Film and TV Industry

With the rise of competition from other states and countries, California faces the challenge of attracting and retaining film and TV production. States like New York and Georgia have successfully lured productions with their own tax incentive programs, according to a 2021 report by FilmLA.

Addressing Industry Challenges Post-Pandemic

The new proposal comes at a time when the film and TV industry is still recovering from the impact of the COVID-19 pandemic and dealing with labor strikes. Governor Newsom indicated that the industry needs a “jolt” to stimulate growth and jobs.

Support from Industry and Local Representatives

Newsom’s proposal has garnered significant support from industry representatives and local politicians. Industry workers cited the psychological strain of leaving home to work in other states, and government officials emphasized the significant economic benefits the industry provides.

Beyond Hollywood Stars: Investment in Community

While Hollywood glamour often takes the spotlight, Newsom’s proposal extends beyond the famous faces. It aims to support the entire ecosystem of the film and TV industry, including small businesses and working professionals, contributing to the state’s economy and communities.

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