Gavin Newsom Proposes Expanding California’s Movie and TV Tax Credit to at Least $1 Billion

California Gov. Gavin Newsom, on the eve of the 2026 midterm elections, is calling for another major expansion of the state’s Film and TV Tax Credit Program.

Newsom is proposing an increase to California’s entertainment production incentive program from $750 million in annual tax credits to at least $1 billion, expanding what the governor’s office touts as already the largest capped film and TV tax credit in the U.S.

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The proposed expansion, announced Monday (Nov. 2), would include credits for above-the-line talent, to cover spending on actors’ salaries; $100 million earmarked for independent productions; rewards for companies that commit to more than one production in California; and an extension of the tax credit through 2040.

In addition, Newsom reiterated his call for Congress to pass the federal Motion Picture, Television, and Entertainment Revitalization Act (MPTERA) by the end of 2026. The legislation — which has bipartisan support — would establish a 20% base tax credit for qualifying film, television and VFX projects that are produced in the U.S.

Gavin’s proposal comes after California increased its film and TV tax credit from $330 million to $750 million last year — but production levels in the state have continued to…