Following success in the first year, Gov. Gavin Newsom is bringing the expanded film and TV tax credit program back for a reprise.
Nine TV projects, including seven new series, would kick off the second year’s line-up. Featuring a “Clueless” sequel for Paramount+ and a reboot of “The Rockford Files,” they are expected to bring $608 million of direct production spending in the Golden State across 1,014 filming days.
The program was on track to deliver $6.6 billion in economic impact in its first year, according to a July press release from the governor’s office. It attracted 170 projects and an 82% application volume increase compared to 2024. The program got an updated budget earlier this year, expanding the annual program cap from $330 million to $750 million through at least 2030.
“Just as it did in its first year, the second year of the expanded tax credit plans to continue exceeding expectations and generate billions in economic activity – solidifying California’s competitive edge in entertainment and expanding opportunities for today’s workforce,” said Newsom in a statement Aug. 10. “We’re able to shine a spotlight on the talent and creativity the Golden State has to offer, while also generating new jobs and fair wages.”
Staying power
With the expanded budget, California is ranking among the states that offer the highest amounts of tax incentives for film and TV. However, given the high operational price tag and cost of living, local productions have increasingly spilled over to other places such as Georgia and New York.
Internal conflict with state authorities also led to exodus considerations. Hollywood-based Paramount Skydance Corp., for example, is weighing the option to move out of California among legal battles with state Attorney General Rob Bonta over its $111 billion merger with Warner Bros. Discovery Inc., despite receiving more than $37 million in production tax credits so far from the state.
