Assembly subcommittee grills proposal to raise California film and TV tax credit to $750 million

Members of the California State Assembly Budget Subcommittee 5 held an informational hearing focused on the governor’s proposal to raise the annual cap on the state film and television tax credit program to $750 million. Administration witnesses, industry groups and unions told the panel the increase is aimed at keeping productions — and the jobs and local spending they generate — in California. Analysts and some legislators cautioned the program’s long‑term fiscal payoff is uncertain and urged benchmarks and stronger fiscal oversight.

Supporters argue the tax credit prevents “runaway production” — projects that move to other states or countries for more generous incentives — and preserves tens of thousands of middle‑class union jobs in crafts such as lighting, set construction, camera, hair and makeup, and post production. Colleen Bell, director of the California Film Commission, said other states and countries have expanded incentives and infrastructure, and California must respond or risk losing market share: “If we don’t compete, we will continue to lose our market share,” Bell said. She told the committee that the program has helped create wages and jobs since its inception and that the governor’s proposal includes a diversity provision in the new program.

Lauren Greenwood, deputy director of legislative and external affairs at the Governor’s Office of Business and Economic Development (GO‑Biz), said the administration is proposing the $750 million cap to restore competitiveness after a decade of increased incentives elsewhere and recent industry disruptions including the pandemic and strikes. Greenwood said the state’s prior changes — shifting from a lottery to a jobs‑ratio competitive selection and adding refundability — should improve California’s standing but “it probably won’t be enough” without a larger allocation.

The Legislative Analyst’s…