Newsom Proposes $1 Billion California Film Tax Credit

California Gov. Gavin Newsom has proposed increasing the state’s annual film and television tax-credit program from $750 million to at least $1 billion, an expansion that would require legislative approval before taking effect. The proposal would also extend the program through 2040, according to its announced terms. It includes $100 million for independent productions, credits for above-the-line talent such as producers, directors and cast members, and benefits for businesses that commit to producing more than one project in California. The state currently allocates $750 million a year to the program. California raised the annual amount from $330 million to $750 million in 2025. The latest proposal would build on that increase, though its final terms and whether lawmakers will approve it remain unsettled. The California Film Commission administers the credits, which support productions filming in the state. Recent recipients have included major studio projects and independent productions. In an October allocation round described in the reports, Pixar, Lionsgate and Paramount were awarded credits for projects including an untitled Pixar animated feature, a sequel to Michael...