California boosts film tax credit to $750 million amid job creation and diversity push

Governor Newsom's 2025-26 State Budget Proposal highlights a significant expansion of California's film and television tax credit, increasing funding from $330 million to a staggering $750 million. This bold move aims to address the oversubscription of the program, which has been a critical driver of job creation in the state's legacy entertainment industry.

During the recent government meeting, officials emphasized that California is facing stiff competition from other states for film production. The increased funding is seen as essential to retain good-paying jobs and keep production within the state. "Given the experience of the current program and its success in creating jobs, we felt it was important to increase the program to address the current environment surrounding the industry," a representative stated.

The proposal also includes a commitment to improving workforce enforcement investments and diversity requirements. Concerns were raised about previous eliminations of diversity, equity, and inclusion (DEI) programs in the industry. In response, officials noted that existing diversity requirements are already part of the tax credit framework, with certain percentages withheld based on companies meeting these criteria. Further discussions with the legislature will explore additional measures to enhance diversity in hiring practices.

While the proposal does not currently include the establishment of a task force to monitor these initiatives, officials indicated that this could be a topic for future legislative discussions. The meeting underscored the administration's commitment to not only bolster the film industry but also ensure it reflects California's diverse population.

As the budget proposal moves forward, stakeholders will be watching closely to see how these ambitious plans unfold and what impact they will have on California's film and television landscape.