By Lisa Richwine
(Reuters) -Hollywood’s home state of California will more than double annual tax incentives for film and television production to $750 million under a measure passed by the Democratic-led legislature on Friday.
The increase from the current $330 million was approved as part of a broader tax bill that is expected to be signed into law by Governor Gavin Newsom in the coming days.
Democrat Newsom had advocated for the boost, a step to help reverse a years-long exodus of production from California to places such as Britain, Canada and other U.S. states that offer generous tax credits and rebates.
Producers, directors, actors and behind-the-scenes workers have warned lawmakers that Hollywood was at risk of becoming the next Detroit, the automaking capital devastated by overseas competition, if current trends continued.
Permitting data showed production in Los Angeles, the location of major studios including Walt Disney and Netflix, fell to the second-lowest level on record in 2024. California has lost more than 17,000 jobs since 2022 from its declining share of the entertainment industry, according to union estimates.
Producer Uri Singer said he shot three films in New York to take advantage of its tax incentives. He received a California tax credit to shoot his current project, a horror flick called “Corporate Retreat,” in Los Angeles.
“You can get such good cast and crew that are available that makes shooting in L.A. financially better,” he said. “Besides that, creatively you find here anyone you want, and if you need another crane, within an hour you have a crane.”
Plus, “the crew is happy because they go home every day,” Singer added.
Local advocates applauded California’s expansion of tax incentives, though they said more needs to be done.
Writer Alexandra Pechman, an organzier of a “Stay in LA” campaign by Hollywood workers, called on Hollywood studios to commit to a specific amount of spending in California to support creative workers.
“It’s time for the studios and streamers to do their part to turn this win into real change for all of us,” Pechman said.
Industry supporters also are pushing for federal tax incentives to keep filming in the United States.
Republican President Donald Trump has offered a different way to address the issue. Trump said in May that he had authorized government agencies to impose a 100% tariff on movies produced overseas. The movie tariff has not been implemented.
(Reporting by Lisa Richwine; Additional reporting by Rollo Ross; Editing by Alistair Bell)
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