California Legislature Approves $750 Million Film Tax Credit by Wide Margin

As seen on Variety

California legislators have voted to approve a major expansion of the state’s tax credit for film and TV production, which has been a key priority for Gov. Gavin Newsom.

The Legislature voted Friday to increase the cap on the program from $330 million a year to $750 million. The Assembly approved a budget trailer bill on a vote of 64-1, while the Senate passed it 31-3.

The leadership of both houses agreed to the increase as part of a $321 billion budget deal that was finalized on Tuesday.

The expansion follows months of lobbying from entertainment unions and the Motion Picture Association, who argued that it was needed to stay competitive with other states. Rebecca Rhine, the president of the Entertainment Union Coalition, led several lobbying trips to Sacramento and said that 250,000 letters were sent to lawmakers.