California Updates Its Tax Incentives To Keep Hollywood Here

We covered the $750 million in tax incentives that California doled out in order to try to keep film and TV production here. But when we did, we also talked about how this functioned more to lure new shows to stay here, because other shows had already left.

So, what's happening with the incentives now, and are they actually working? The curtain has been peeled back, and we can see just how things are going.

Let's dive in.

Why Are We Keeping Productions in California?

Well, Hollywood is here. And it was starting to get weird living and working in an industry where all the jobs you book send you somewhere else.

There was a real chance Hollywood as we know it would disappear, especially with major studios opening offices and production houses elsewhere.

In recent years, states like Georgia, New York, and New Jersey, as well as countries like the United Kingdom and Canada, have offered generous incentives, causing a "runaway production" problem for California.

We saw thousands of lost jobs and a significant economic blow to the state's economy. The ramifications of this extend from top to bottom, including a loss of taxes, people leaving, and much more.

The new incentives were meant to stabilize and reverse these things.

Is It Working?

As Deadline reports, Colleen Bell, Executive Director of the California Film Commission, said, “The Film and Television Tax Credit Program is meeting the challenge of creating jobs and keeping productions here at home,” said Bell.

She continued, “These 22 television projects will employ thousands of Californians and generate hundreds of millions for our state’s economy. Most importantly, they will keep world-class talent and crews here, ensuring California drives the future of storytelling.”

The Governor's office estimates that the new productions qualifying for the incentives will create 6,700 jobs for cast and crew and generate $1.1 billion in total spending.

By keeping productions in the state, California is not only protecting existing jobs but also creating new opportunities for its residents.

California's Governor, Gavin Newsom, had strong words for what he thinks the incentives will do.

“California has long been the entertainment capital of the world — and the newly expanded film and TV tax credit program is keeping it that way. This program means paychecks for middle-class workers, opportunities for small businesses, and investment in communities up and down the state. We’re not just protecting our legacy — we’re reminding the world why the Golden State remains the beating heart of film and television,” Newsom said.

Right now, aside from those shows, several movies have also opted to shoot here, which is exciting.

This was never going to be something that immediately fixed all the problems facing Hollywood, but for now, things are trending in the right direction.

You can see the full list of film and TV projects that got approved here.

Summing It Up

This is a step in the right direction, but we have to keep stepping. Hollywood should be aggressive in shooting and keeping as many new projects here as possible. Especially ones that rely on green screens or special effects, there's no reason they should shoot on sound stages anywhere else.

And on the government side, I think raising the $750 million to a billion would only do more to help.

The more jobs we can keep here, the better.

Let me know what you think in the comments.