Governor Gavin Newsom has today celebrated two major milestones for the Golden State’s entertainment economy: the signing of a stand-alone post-production tax incentive and the reinforcement of the existing Film and TV Tax Credit Program. At the same time, Congress is moving forward with a bipartisan bill that would create a 20% federal credit stackable with state programs, a measure that Newsom has championed since his May 2025 appeal to Washington.
The Motion Picture, Television, and Entertainment Revitalization Act—sponsored by Senators Adam Schiff and Tim Scott and Representatives Nathaniel Moran and Linda Sanchez—aims to offer a nationwide 20% credit for qualified production expenditures. Such a credit would allow producers to combine federal relief with state incentives, a strategy that could keep more projects—and the jobs they generate—on American soil.
California’s expanded Film and TV Tax Credit Program
In July 2025 California more than doubled its annual credit allocation, raising the cap from $330 million to $750 million. This $3.75 billion commitment through 2030, branded as Program 4.0, produced striking results in its first year. Applications surged by 82% compared with the previous cycle, and total direct production spending topped $7.2 billion, of which $4.7 billion qualified as eligible expenditures and $2.7 billion counted as qualified wages.
The ripple effect was evident on the ground: 237,000 background-performer days were logged, film shoot days rose 52%, and TV shoot days increased by more than 7%. Over 7,600 filming days were recorded across the state, including 1,366 out-of-zone days that spread economic benefits to counties beyond the traditional hub. Altogether, the program generated nearly 38,000 cast and crew jobs.
Television projects also felt the boost. The credit supported 20 new series and six pilots—up from just eight new series under the prior iteration. Notable titles include Fallout (Season 3), Forever (Season 2), and The Pitt (Season 3). In film, the first year of Program 4.0 welcomed animated works such as Donkey and live-action titles like an untitled Jumanji installment and a Snoop Dogg biopic. Productions benefiting from the credit earned 21 Emmy awards in 2026, underscoring the program’s cultural impact.
Since its launch in 2009, the California Film & Television Tax Credit has generated more than $34.2 billion in economic activity and supported over 243,000 jobs. For every dollar of credit awarded, the state has seen $24.40 in economic output, $16.14 in GDP, and $8.60 in wages—figures that highlight the multiplier effect of the incentive.
New stand-alone post-production credit
On September 19 2026, Newsom signed Assembly Bill 2319, creating California’s first independent post-production tax credit. The measure offers a 35%-50% credit on qualified post-production expenses—editing, visual effects, sound mixing, and music composition—performed within the state. Crucially, the credit does not require a minimum amount of filming in California, allowing projects that shoot elsewhere to still tap California’s post-production talent pool.
Funding for AB 2319 is limited to $10 million annually, far short of the $100 million originally requested by the bill’s author, Assemblymember Nick Schultz. The legislation sailed through the Senate (33-5) and the Assembly (72-2) and will become operational in January 2027. Industry leaders welcomed the move as a “historic moment,” but they stress that additional funding will be necessary to restore California’s share of U.S. post-production employment, which has slipped from 53% to 42% over the past 13 years.
Complementing AB 2319, Senate Bill 186 was also signed. It accelerates cash-refund payouts, increases the refundable portion of unused credits, and exempts independent productions from a temporary credit cap beginning in 2027—measures designed to make the state’s incentive more attractive and flexible.
Federal backdrop and industry outlook
The national proposal championed by Schiff, Scott, Moran and Sanchez would provide a 20% credit that can be layered atop state programs like California’s. If enacted, the federal credit would help U.S. productions compete with foreign jurisdictions that already offer aggressive incentives, thereby curbing the exodus of film and TV projects abroad.
Stakeholders such as the Motion Picture Association and the Editors Guild have praised Newsom’s actions, noting that the combined state and prospective federal incentives send a clear signal that America remains committed to nurturing its creative workforce. As the entertainment sector watches the legislative process, the alignment of state and federal policies could determine whether Hollywood retains its global preeminence.
