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California Aims to Double Hollywood Tax Credits Amid Production Drop

The governor wants to increase incentives to film and television to $750 million a year. Further changes may be on the way as the migration of production from the state borders on an exodus.

In the wake of the 2023 writers’ and actors’ strikes, local crew members and creatives described an anemic return to production as major companies sought to slash costs and the era of Peak TV came to a screeching halt. Increasing tax incentives to productions across the state emerged as a proposed remedy for the situation in June during labor negotiations for crew members who belong to the Los Angeles-area Hollywood Basic Crafts union coalition. According to Rhine, the DGA and other industry unions have "spent a lot of time" talking to Newsom's administration about their production concerns — "the high level of unemployment, the amount of work leaving the country, the inability to compete effectively with incentives elsewhere," she says.

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