California Governor Gavin Newsom unveiled a new strategy on Sunday to rejuvenate the state’s film industry.
His proposal seeks to increase California’s Film & Television Tax Credit Program from $330 million to $750 million, a move he believes will boost productions in the Golden State. The legislative discussion on the plan is anticipated for the 2025-2026 budget cycle.
This initiative aims to retain entertainment industry jobs in California and counteract the growing financial incentives offered by other states.
Newsom announced the proposal during a press conference at Raleigh Studios in Los Angeles this weekend.
He was accompanied by industry figures, including Brigitta Romanov, the executive director of the Costume Designer’s Guild.
“Unfortunately, film and television professionals who once thrived in this sector are now facing a critical situation,” Romanov stated. “California is finding it difficult to compete for production business. The impact is far greater here than anywhere else globally, given that so many of us reside in this state.”
Millicent Shelton, vice president of the Director’s Guild of America, provided her insights into the challenges facing the entertainment industry during the press conference.
“Numerous directors are compelled to leave California, and often the country, for employment… the distressing choice between career and home can inflict psychological harm and destabilize marriages, families, and communities,” Shelton noted. “I speak from experience, having traveled throughout my twins’ 16 years.”
Los Angeles Mayor Karen Bass was present to lend her support for Newsom’s initiative and discussed the changing landscape of the film industry.
“When I was part of the State Assembly in 2009, we recognized the necessity for the entertainment sector to prosper during those times. The industry began to fade and shift to other states. However, many of those states have since built their own infrastructures, and that development has significantly affected us,” Bass expressed.
Newsom concluded the event by addressing the mounting anxiety in the industry regarding job losses.
“This trend has been in place for many years, predating the pandemic and certain labor challenges,” Newsom remarked. “That concern has now become a headline—a prominent headline. It seems there isn’t a week that passes without someone presenting me with not just a text from Ben Allen, but a headline from one of the major publications.”
The Governor received applause from the audience while discussing the suggested tax relief.
“We had to make an impactful statement, and we must take action that is meaningful, not merely intentional,” Newsom stated.
He emphasized that this is merely the first step in the journey to adopt this initiative.
“This is a proposal, and we’re going to require your assistance,” Newsom advised. “We will need your backing. Support. We have some exceptional legislative leaders here, but we’ll need that support to bring this to fruition.”
