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American Focus > Blog > Entertainment > California Film Credit Expansion Hits Snag as Dollar Figure Removed
Entertainment

California Film Credit Expansion Hits Snag as Dollar Figure Removed

Last updated: May 23, 2025 3:35 pm
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California Film Credit Expansion Hits Snag as Dollar Figure Removed
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The Future of California Film and TV Tax Credit Hangs in the Balance

The California film and TV industry is on edge as the fate of the coveted tax credit program hangs in the balance. Governor Gavin Newsom’s promise to raise the program cap to $750 million seemed to be within reach, but recent developments have thrown a wrench in the works.

Two bills, AB 1138 and SB 630, have been making their way through the legislative process to increase the program cap and make it more attractive to producers. However, references to the $750 million figure were unexpectedly removed during committee hearings last Friday.

Sen. Ben Allen, the author of the Senate version of the bill, expressed disappointment at this setback, emphasizing the importance of modernizing the program to keep California at the forefront of the entertainment industry.

Despite this hiccup, industry supporters remain optimistic that the expansion will ultimately be approved. Assemblyman Rick Chavez Zbur believes there is broad support in both houses for the increase, even though nothing is guaranteed.

While the removal of the dollar figure may have been a temporary setback, Governor Newsom reiterated his support for the $750 million increase just last week. The pressure is on for the Legislature to pass a budget by June 15, with funding items like the tax credit program potentially addressed through trailer bills.

Entertainment union representatives have been actively lobbying for the expansion, arguing that California must do more to compete with other states and countries offering lucrative incentive programs. The proposed changes to the tax credit program would not only increase the amount of the credit but also expand eligibility to include a wider range of productions.

See also  Draft Voight Plan for Hollywood Included American 'Cultural Test'

As the industry anxiously awaits the outcome of budget negotiations, the future of the California film and TV tax credit remains uncertain. Will the program be modernized and expanded to secure the state’s status as a global entertainment hub? Only time will tell.

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