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. This move has led to a 400% surge in aid applications and approval of 22 television projects, marking a significant improvement from previous years. The initiative is aimed at bolstering the state’s film industry, attracting productions, and creating jobs amid increasing global competition for filming incentives. With these changes, California continues to affirm its position as a leading hub for the entertainment industry.
California has made a significant move to bolster its Film and Television Tax Credit Program by increasing its annual budget from $330 million to $750 million as of July. This expansion has ignited a dramatic response, leading to a 400% surge in aid applications compared to the same period last year, as reported by the Governor’s Office of Business and Economic Development.
In the first round of incentive awards, the program has approved 22 television projects, marking a 38% increase from the 16 approvals during the same timeframe last year. These approved projects are expected to utilize half of the allocated $750 million incentive fund, while the remaining funds are reserved for future film undertakings.
Tax credits are crucial to retaining productions in California, particularly in light of increasing competition from other states and countries offering attractive financial packages. The demand for filming at studio properties in Los Angeles remains below pre-pandemic levels, which has led to fluctuations in real estate demand. This expansion of the tax credit program aims to fill production stages, providing stability in a sector that has been considerably affected by recent challenges.
Notable relocations under the new program include Netflix moving Tom Segura’s series “Bad Thoughts” from Texas to Los Angeles. While the initial response to the incentives appears promising, concerns linger over sustaining this heightened interest in productions within the region. California’s status as the global entertainment capital has faced decline due to factors such as the pandemic and labor strikes.
Global Competition and Incentives
Between 2017 and 2024, global incentive programs have escalated by 39%, with various cities competing to attract film and television projects. The new California tax credit initiative has raised the project credit cap from 20% to 35%, and starting in the 2025-26 fiscal year, there will be a reimbursement option for unutilized credits. The application process for film projects is scheduled for August, while the California Film Commission is responsible for evaluating applications based on criteria such as job creation, expenditure, and commitment to filming within the state.
Among the productions awarded credits, 15 new series, five renewals, and two relocations have been approved. Major new projects include Hulu dramas created by Dan Fogelman and an HBO series from Larry David. These projects are expected to generate $1.1 billion in economic activity, which includes $714 million in spending and approximately $413 million in wages. The approved projects will cover over 1,100 filming days across the state, employing around 6,500 crew members and over 46,000 background actors. Most of the approved shows are linked to major studios based in Los Angeles.
Future Projections and Developments
Major studios are also planning substantial renovations and expansions. Warner Bros. Television is concluding a $500 million renovation of its Burbank studio, enhancing its sound stages and office space. Alongside this, new production facilities and expansions are on the horizon, including Hackman’s $1 billion overhaul of Television City. The California Film Commission remains optimistic regarding the new tax credit’s potential for job creation and the retention of production talent within the state.
State officials have emphasized the necessity of keeping world-class talent and crews in California to secure the state’s future as a leader in storytelling within the entertainment industry.
FAQ
What is the new budget for California’s Film and Television Tax Credit Program?
How much have aid applications increased?
What types of projects have been approved?
What economic impact is expected from the approved projects?
Key Features of the California Film and Television Tax Credit Program
| Feature | Details |
|---|---|
| Budget Increase | $750 million |
| Application Surge | 400% increase in applications |
| Approved Projects | 22 television projects |
| Economic Impact | $1.1 billion |
| Job Creation | Approximately 6,500 crew members and over 46,000 background actors |
Deeper Dive: News & Info About This Topic
- CoStar: California’s Expanded Incentives Lure Business to Struggling Hollywood Soundstages
- Wikipedia: Film Production in California
- Variety: California Production Incentive Increase Applications
- Google Search: California Film and Television Tax Credit
- LA Times: 22 Productions Selected for California Tax Credits
- Encyclopedia Britannica: Film
- Deadline: California Film & TV Production Tax Incentives
- Google News: California Film Tax Incentives
- Hollywood Reporter: The Studio Nabs Tax Credits to Shoot in California
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
