California, September 5, 2025
News Summary
California has significantly increased its Film and Television Tax Credit Program budget from $330 million to $750 million starting this July. This change has led to a remarkable 400% surge in applications for financial aid from production companies. In the first round of funding, 22 television projects were approved, reflecting a 38% rise compared to last year. The expansion aims to bolster California’s film industry amidst growing competition and is projected to create thousands of jobs while generating $1.1 billion in economic activity.
California has announced a major expansion of its Film and Television Tax Credit Program, increasing the annual budget from $330 million to $750 million as of July. This substantial funding boost has prompted a remarkable 400% rise in applications for aid compared to the same period last year, as reported by the Governor’s Office of Business and Economic Development.
The expansion of the tax credit program has led to the approval of 22 television projects in the first round of incentive awards, marking a 38% increase over the 16 approvals granted in the same timeframe last year. The approved projects are expected to utilize half of the new $750 million budget, while the remaining funds will be allocated for future film projects.
Tax credits play a vital role in maintaining California’s production base, as competition intensifies from other states and countries that offer enticing financial packages to film and television projects. Filming within studio properties in Los Angeles continues to be below pre-pandemic levels, which has affected real estate demand in the region. Landlords and brokers are optimistic that the expanded tax credit program will aid in filling production stages and curtailing volatility within the industry.
Already, a notable relocation has occurred under the new program, with Netflix moving Tom Segura’s series “Bad Thoughts” from Texas back to Los Angeles. Despite the initial surge in applications and project approvals, concerns loom regarding the sustainability of interest in productions within Los Angeles moving forward. The state has faced challenges, including a decline in its status as the global entertainment capital due to the pandemic and recent labor strikes, alongside escalating competition from other cities pursuing film and television projects.
The new tax credit program has increased the project credit cap from 20% to 35%. Additionally, a reimbursement option for unutilized credits will be available starting in the fiscal year 2025-26. The application process for film projects is set to open in August 2023. The California Film Commission is tasked with evaluating applications based on criteria such as job creation, expenditure, and commitment to filming in the state.
Among the productions receiving credits are 15 new series and five renewals, with notable relocations from other states included. Key new projects feature Hulu dramas created by Dan Fogelman and a new HBO series from executive Larry David. Approved projects are projected to generate approximately $1.1 billion in economic activity, including $714 million in spending and $413 million in wages. In total, these projects will contribute over 1,100 filming days throughout the state, creating opportunities for about 6,500 crew members and more than 46,000 background actors.
Nearly all approved shows are affiliated with major studios located in Los Angeles. Warner Bros. Television is currently finalizing a $500 million renovation of its Burbank studio, which will add new sound stages and office spaces. Furthermore, new production facilities and expansions are ongoing, such as Hackman’s ambitious $1 billion overhaul of Television City.
The California Film Commission remains optimistic regarding the anticipated impact of the enhanced tax credit program on job creation and the retention of production talent within the state. State officials stress the importance of maintaining world-class talent and crews in California to safeguard the state’s future as a leading hub for storytelling.
FAQ
What is the Film and Television Tax Credit Program?
The Film and Television Tax Credit Program provides financial incentives to production companies to film in California, helping to retain industry jobs and bolster local economies.
Why did California expand its tax credit budget?
The expansion aims to combat rising competition from other states and countries while rejuvenating the local film industry post-pandemic.
How has the application rate changed with the new tax credit program?
Applications for aid increased by 400% compared to the prior year due to the expanded budget and increased project caps.
What types of projects are receiving tax credits?
The approved projects include new series, renewals, and relocations, which are predominantly associated with major studios in Los Angeles.
What economic impact is expected from the approved projects?
The approved projects are projected to generate $1.1 billion in economic activity, creating thousands of jobs for crew members and background actors.
Key Features of the Tax Credit Program Expansion
| Feature | Details |
|---|---|
| Previous Budget | $330 million |
| New Budget | $750 million |
| Increase in Applications | 400% |
| Projects Approved | 22 television projects |
| Projected Economic Impact | $1.1 billion |
| Jobs Created | Approximately 6,500 crew members and over 46,000 background actors |
Deeper Dive: News & Info About This Topic
- CoStar: California’s Expanded Incentives Lure Business to Struggling Hollywood Soundstages
- Variety: California Production Incentive Increase Applications
- Los Angeles Times: 22 Productions Selected for California Tax Credits
- Wikipedia: Film in California
- Google Search: California Film Tax Credit
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MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
