Italian
Gov. Gavin Newsom’s bold push for a $750M film incentive
A strategic move to revitalize Hollywood
In a move that aims to reinvigorate California’s ailing film industry, Gov. Gavin Newsom has proposed a substantial increase in the state’s film incentive program. Announced on Sunday at a press conference held at Raleigh Studios in Los Angeles, Newsom outlined his ambitious plan to boost the current subsidy from $330 million to a whopping $750 million.
The need for a bold statement
“We needed to be big and bold,” Newsom emphasized, standing alongside supportive labor groups. This proposed increase is seen as more than just a financial boost. It’s a strategic statement aimed at preserving California’s historical dominance in film and TV production.
Flanked by key industry stakeholders, Newsom explained the urgency of the matter: “We’re in a position where we can afford this, and we need to do this.” The new incentive plan, pending legislative approval, is set to take effect in July 2025. The goal is clear: to keep California competitive against states like New York and Georgia, which have recently upped their incentives to attract film production.
A significant endorsement from Los Angeles leadership
Los Angeles Mayor Karen Bass strongly supports Newsom’s proposal. She highlighted its importance, saying it would make a “huge difference” in keeping the state competitive. “Just like we need to do in the World Series, we have to make sure we stay ahead of New York,” she noted, underscoring the competitive nature of the industry.
Industry leaders rally behind the proposal
Charles Rivkin, chairman and CEO of the Motion Picture Association, expressed his support via social media, praising Newsom for his commitment to securing California’s future as a leader in film, television, and streaming production. The sentiment was echoed by multiple labor leaders who see this proposal as a lifeline for workers struggling to find employment due to the industry’s downturn.
Alex Aguilar, business manager of LiUNA Local 724, which represents laborers in the entertainment sector, detailed the struggles faced by members: “It’s been rough. Hollywood is the heartbeat of the entertainment industry, and it needs to remain that way.”
The ripple effects of past industry strikes
California’s film industry has been grappling with the aftermath of the 2023 strikes, which severely disrupted production schedules. Permit data from FilmLA indicates that production levels have not rebounded to pre-strike figures, highlighting the urgent need for a stimulus.
The state has consistently fought to protect its film industry from what is known as “runaway production”—where studios relocate projects to outside regions that offer more attractive subsidies. In 2023, New York increased its film tax incentive program from $420 million to $700 million, exacerbating the competitive pressure on California.
The critical role of the new incentive
Brigitta Romanov, the executive director of the Costume Designers Guild, warned of the risks associated with not taking swift action. “Other states and countries, through tax credits, are aggressively pursuing our jobs and are succeeding. We are at risk of losing the industry entirely. Filming needs to stay here.”
Historical context and future prospects
The history of California’s film incentive program dates back to 2009 when Gov. Arnold Schwarzenegger first approved a $100 million per year subsidy for the industry. This amount was increased to $330 million under Gov. Jerry Brown in 2014.
Under Newsom’s leadership, there was a temporary $90 million increase in 2021, funded by a large pandemic-era surplus. This history of financial support underscores the state’s ongoing commitment to preserving and strengthening its cinematic heritage.
By more than doubling the current incentives, Newsom aims to ensure that California stays at the forefront of global entertainment production. This move not only aims to safeguard the heritage but also to provide stability and growth for the future.
As the legislative process unfolds, industry stakeholders and workers alike remain hopeful that this bold proposal will indeed be the catalyst needed to revive and sustain Hollywood’s storied legacy.
Encouraging further discussion, share this important update on social media or follow our site for the latest developments in film industry advancements and legislative news.
