California, September 5, 2025
News Summary
California has increased its Film and Television Tax Credit Program budget from $330 million to $750 million as of July 2023, leading to a 400% rise in aid applications. This boost has resulted in 22 approved television projects, up from 16 last year. The program aims to retain productions in California amidst growing competition, and the anticipated economic impact includes approximately $1.1 billion in activity and the creation of around 6,500 crew jobs and over 46,000 background roles.
California Expands Film and Television Tax Credit Program
California has significantly increased its annual budget for the Film and Television Tax Credit Program, jumping from $330 million to $750 million as of July 2023. This substantial funding boost has led to a remarkable 400% rise in aid applications, compared to the same period last year, according to data from the Governor’s Office of Business and Economic Development.
Impact of the Increased Funding
As part of the first round of incentive awards, the program has already approved 22 television projects. This figure represents a 38% increase from the 16 approvals granted during the same time frame last year. The approved projects are set to receive approximately half of the $750 million incentive fund, while the remaining amount is reserved for upcoming film projects.
Importance of Tax Credits
Tax credits have become crucial for retaining film and television productions within California, especially as competition from other states and countries intensifies. Many regions offer appealing financial packages to attract productions. Filming activity at studio properties in Los Angeles currently stands below pre-pandemic levels, causing fluctuating demand in real estate.
Growth in Applications
The expansion of the tax credit program has led industry stakeholders, such as landlords and brokers, to note a positive trend in filling production stages. One notable project relocation includes Netflix moving Tom Segura’s new series, Bad Thoughts, from Texas to Los Angeles. While the response to these incentives is encouraging, there are still concerns about maintaining a stable production interest in the state.
Declining Global Status and Future Prospects
California’s status as the global entertainment capital has experienced challenges in recent years due to the pandemic, various labor strikes, and stiff competition. A report indicates that global incentive programs have surged by 39% from 2017 to 2024, with multiple cities competing for film and television projects.
Details of the Tax Credit Program
The new tax credit program raises the project credit cap from 20% to 35%. Additionally, a reimbursement option for unused credits will commence in the 2025-26 fiscal year. The application process for film projects is scheduled for August, with potential applicants being evaluated based on criteria such as job creation, spending, and commitments to film within the state.
Economic Impact
Currently approved projects, which comprise 15 new series, five renewals, and two relocations, are projected to generate $1.1 billion in economic activity. This includes an estimated $714 million in spending and $413 million in wages. Collectively, these projects are expected to entail over 1,100 filming days across California and create around 6,500 crew jobs along with more than 46,000 background acting roles.
Ongoing Developments
Nearly all the approved series are linked to major studios based in Los Angeles. Among the developments, Warner Bros. Television is concluding a $500 million renovation of its Burbank studio to add sound stages and office spaces. Moreover, significant investments are being made in new production facilities, including a $1 billion overhaul of Television City by Hackman.
Future Considerations
The California Film Commission remains optimistic about the potential effects of the renewed tax credit on job creation and retaining production talent in the state. Still, state officials underscore the importance of keeping high-quality talent and crews in California to preserve the state’s future role in global storytelling.
FAQ
What is the California Film and Television Tax Credit Program?
The California Film and Television Tax Credit Program provides tax incentives to film and television productions that commit to filming in California, aiming to retain and attract productions to the state.
How has the budget for the tax credit program changed?
As of July 2023, the budget increased from $330 million to $750 million, significantly boosting funding available for film and television projects.
What impact has this funding increase had?
There has been a 400% rise in aid applications, along with a 38% increase in approved television projects, moving from 16 to 22 approved projects compared to the previous year.
What are the expected economic outcomes of approved projects?
Approved projects are projected to generate $1.1 billion in economic activity, including $714 million in spending and $413 million in wages.
What major television series have relocated under this program?
One of the notable relocations is Netflix’s Tom Segura series Bad Thoughts, which moved from Texas to Los Angeles.
Key Features Summary
| Feature | Details |
|---|---|
| Budget Increase | $330 million to $750 million |
| Aid Applications | 400% increase |
| Approved Projects | 22 television projects |
| Projected Economic Activity | $1.1 billion |
| Job Creation | Approx. 6,500 crew jobs and 46,000 background actors |
| Tax Credit Cap | Raised from 20% to 35% |
Deeper Dive: News & Info About This Topic
- CoStar: California’s Expanded Incentives Lure Business to Struggling Hollywood Soundstages
- Wikipedia: Film and television in California
- LA Times: 22 Productions Selected for California Tax Credits
- Google Search: California Film and Television Tax Credit Program
- Deadline: California Film & TV Production Tax Incentives
- Encyclopedia Britannica: Film
- New York Times: California Production Tax Credit
- Google News: California Film Tax Credits
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