The proposal expands California’s Film and Television Tax Credit Program to $750 million (€695 million) a year, more than double the current allocation.
The governor of the southwestern state of California has unveiled a proposal to double tax benefits for the Hollywood film industry to help attract and retain productions.
“This is about investing in the future of this industry,” said Democrat Gavin Newsom on Sunday at a press conference in Los Angeles, considered the entertainment capital of the world.
The proposal expands the California Film and Television Tax Credit Program to 750 million dollars (695 million euros) annually, more than duplicate current allocation.
The plan would position California as the US state with the most Increased tax incentives for movies and TV showssurpassing rivals like New York (northeast).
The measure, which requires the approval of the California parliament, could be a strong boost for Hollywood, which has not been able to recover the production rate recorded before the Covid-19 pandemic and has also been affected by several strikes.
Newsom said the increased program could take effect as early as July 2025 and last five years.
Since its creation in 2009, the initiative generated more than 26 billion dollars (24 billion euros) in economic activity and supported the creation of more than 197 thousand jobs throughout the state, the governor said.
“We’re in a position where we can withstand this and we have to,” Newsom said, acknowledging that Hollywood faces stiff competition.
Source: Observadora
