Newsom Proposes $1 Billion Film Tax Credit
California's governor wants to expand the state's annual film and television tax incentive to at least $1 billion and urges Congress to act on a federal match.
Updated on Nov. 2, 2026 in Television
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Should California spend $1 billion a year on film and TV tax credits?
Gov. Gavin Newsom proposed expanding California's film and TV tax credit from $750 million to at least $1 billion annually. He also called on Congress to pass the federal Motion Picture, Television, and Entertainment Revitalization Act by the end of 2026.
Why it matters
Production levels in California have continued to fall despite last year's increase in the tax credit from $330 million to $750 million. Newsom argues states cannot shoulder the cost alone, making federal action part of the proposed solution.
The current program has generated $8.24 billion in direct production spending, including $5.3 billion in qualified expenditures and $3.2 billion in qualified wages. Whether the proposed $1 billion expansion would reverse the continued decline in production levels has not yet been determined.
The players
Gavin Newsom
Governor of California who proposed the expansion of the state's film and television tax credit program.
Motion Picture, Television, and Entertainment Revitalization Act
Federal proposal that would establish a 20% base tax credit for qualifying film, television, and visual effects projects produced in the United States.
The details
The proposal would add credits for above-the-line talent covering actors' salaries and set aside $100 million for independent productions. It would also reward companies committing to more than one California production and extend the tax credit through 2040.
Timeline
2025: California increased the film and TV tax credit from $330 million to $750 million.
November 2, 2026: Newsom announced the proposed tax credit expansion.
End of 2026: Deadline Newsom set for Congress to pass the federal MPTERA.
2040: Proposed end year for the extended tax credit program.
Industry Dynamics
The state's push to expand incentives comes as the federal MPTERA would set a 20% base credit for U.S. productions, positioning California's program as one piece of a broader effort to keep film and TV work domestic. Newsom's argument that states cannot carry the full cost frames the expansion as dependent on Washington acting alongside it.
If enacted, the expanded credit would be aimed at attracting more productions to California, which could affect where new film and television series are filmed. The added talent credits and independent production set-aside are designed to support the crews and actors who work on those shoots.
The takeaway
The proposal ties California's future production volume to a federal policy that has not yet passed, so the outcome depends on action in Washington as well as Sacramento. Readers tracking the entertainment industry should watch whether Congress advances MPTERA before the end-of-2026 deadline.
What happens next
Newsom has asked Congress to pass the federal MPTERA by the end of 2026, a deadline that will determine whether the federal match is in place.
Further reading
For broader context on production incentives, see more Television coverage on California's entertainment industry.
Live Poll
Should California spend $1 billion a year on film and TV tax credits?
