California has dramatically expanded its film and TV tax credit programme, with governor Gavin Newsom confirming a US$750m funding boost aimed at revitalising the state’s struggling production sector, attracting new projects and reversing the outflow of talent and investment.

Gavin Newsom

Bureau of Reclamation via CC

California’s film and television industry has received a substantial boost, with governor Gavin Newsom confirming a major expansion of the state’s tax credit programme. The move sees annual funding for the initiative rise from US$330m to US$750m, in what Newsom describes as a decisive step to revitalise local production, encourage investment, and rebuild the state’s creative economy.

In total, 16 series have already committed to filming new seasons in California under the programme, with projected spending of US$1.1bn and nearly 6,700 cast and crew jobs tied to these productions. The confirmed slate includes returning series such as The Pitt (HBO Max), Paradise (Hulu) and NCIS: Origins (CBS), as well as new pilots, original series and one notable relocation – Amazon’s Mr & Mrs Smith, now set to film in the state.

This latest expansion not only increases the funding pool but also integrates key updates designed to support below-the-line jobs and encourage long-term investments within California’s borders. The changes come in response to a growing trend of productions opting to shoot in other US states or internationally, where more aggressive incentives and lower costs have become increasingly attractive.

The expanded tax credit programme will be implemented during the California Film Commission’s next application windows, which are scheduled for 7–9 July 2025 for television and 25–27 August 2025 for film. The Commission is preparing to release updated guidelines and support materials to reflect the new structure. For the first time since the scheme’s inception in 2009, tax credits will be refundable for all projects, starting with Program 4.0, which came into effect on 1 July.

Paradise is one of 16 series already committed to filming in California

This shift follows Newsom’s 2023 proposal to double the tax credit, a plan intended to counteract the state’s recent production downturn and bolster its competitive standing. While California was once the undisputed home of filmed entertainment, it has faced increasing competition from states such as Georgia – now a major US production hub, offering better financial incentives and access to skilled crews. Internationally, countries like Canada and the UK have also become preferred locations for high-budget content, drawn by similar advantages.

As a result, California – one of the most expensive places to produce scripted and unscripted content – has experienced a steep decline in production activity. According to data from FilmLA, reality TV production in Los Angeles fell by 57% year-on-year during Q2 of 2023. Scripted television fared no better, with FilmLA reporting last year that scripted production was down 55% in Q3 2024, compared to the five-year average. The downturn has forced many entertainment workers to seek employment outside the state, with some leaving Los Angeles entirely.

Governor Newsom has positioned the tax credit increase as a strategic intervention. “California is where filmed entertainment was born, and with this expansion, we’re making sure it stays here. We’re not just investing in productions and soundstages – we’re investing in middle-class careers, small businesses and the communities that power this iconic industry,” he says.

Dee Dee Myers

Dee Dee Myers, senior advisor to the governor and director of the California Governor’s Office of Business & Economic Development, framed the move as a long-term investment in the industry’s resilience and identity. “This expansion is about California’s long game –supporting a dynamic industry that fuels our creative economy and reflects who we are. By doubling down on this commitment, we’re ensuring California remains the premier place to work, create, and tell stories that reach across the world.”

Colleen Bell, director of the California Film Commission, echoed that sentiment. “This expansion is a powerful investment in California’s future, strengthening the state’s position as the global leader in content creation, fuelling job growth and supporting thousands of small businesses that rely on a thriving production industry. This program isn’t just about keeping cameras rolling – it’s about sustaining careers, building opportunity and ensuring that the economic and cultural benefits of filmmaking stay right here in the Golden State.”

From the industry side, the expansion has already been met with approval. Dan Fogelman, creator and executive producer of Paradise, and Sterling K Brown, who stars in and executive produces the Hulu show, highlighted the tangible benefits for productions and workers alike. “We are thrilled that we are going to be able to continue shooting our second season of Paradise in Los Angeles, thanks in no small part to California’s film and TV tax credit. We’ve been lucky enough to shoot in Los Angeles for the majority of our careers – it is home to the best crews in the world and allowing series to shoot (and remain) in LA provides consistent work for countless craftspeople, allowing us all to remain in town with our families and loved ones.”

CBS drama NCIS: Origins will film new seasons in California

In its original form, California’s Film & Television Tax Credit Programme offered a 20–25% credit for productions taking place in the state. A decade ago, it was revised to help prevent projects from leaving for more cost-effective locations. High-profile series such as NBC’s Suits LA, Prime Video’s Fallout and HBO’s Latitude have all benefited from the credit in its current iteration.

Now, with additional funding, a refundable structure and renewed political backing, the programme is entering a new phase. By creating a more competitive and compelling environment for content creation, the state hopes to stem the outflow of projects and people – and reposition California as the default home of world-class production.

Whether this substantial injection of funding can reverse the tide remains to be seen, but with industry figures, policymakers and production companies now aligned in their goals, the foundations for a California content renaissance are clearly being laid. It all now depends on how places that have housed those runaway productions respond.