Steve Hilton Proposed Expanded Film Production Plan
The gubernatorial candidate aims to boost state competitiveness by increasing tax incentives for Hollywood productions.
Updated on Oct. 14, 2026 in Manufacturing
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Republican gubernatorial candidate Steve Hilton has released a new plan to expand California's film and television production incentives. The proposal intends to revive the state's entertainment sector following significant recent job losses.
Why it matters
The plan aims to revitalize Hollywood production in response to intense competitive pressures from other locations. It seeks to counteract a decline in industry employment that has affected the California workforce over the last four years.
California has lost 52,000 production jobs over the last four years, while Los Angeles soundstages currently maintain a 62 percent occupancy rate. The state's current film incentive program operates with a $750 million cap.
The players
Steve Hilton
Steve Hilton is a Republican gubernatorial candidate who has proposed an expanded plan for California film and television production incentives.
Gavin Newsom
Gavin Newsom is the Governor of California who approved a $150 million incentive for soundstage construction in 2021.
The details
Hilton proposes to increase the state tax credit for production to 40 percent while eliminating the current $750 million cap on incentives. The plan would also replace existing application windows with a system of continuous rolling approvals and introduce a five-year sales tax exemption for studio construction materials.
Timeline
In 2021, Governor Gavin Newsom approved a $150 million incentive for soundstage construction.
Over the last four years, California experienced a decline of 52,000 production jobs.
In September 2026, a federal film incentive proposing a 20 percent tax credit on U.S. labor costs was introduced in Congress.
On October 14, 2026, Steve Hilton released his expanded Hollywood production plan.
Market Landscape
This proposal seeks to fundamentally alter the current California film incentive program to better compete with global production hubs. By shifting away from capped incentives and fixed application windows, the plan attempts to gain a competitive edge against other states and international locations.
The proposed policy changes could influence employment opportunities for residents working in the entertainment and soundstage construction industries. Shoppers and businesses may also see shifts in the local economy depending on whether the proposed production incentives successfully attract more film projects to the state.
The takeaway
The plan signals a major shift in how California manages its entertainment industry incentives to compete with federal-level tax credits. Implementation of these proposed policies would depend on future legislative approval and broader economic conditions within the state.
Further reading
For more on the local industrial sector, visit the California Manufacturing section.
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Do you support using state tax incentives to keep private companies from leaving your area?
