The California Production Coalition (CPC): Advocating for a Thriving Film and Television Industry

Just last week, NY Governor Kathy Hochul announced her 2026 budget with significant competitive improvements to the NYS Film Tax Credit Program - Revenue Article VII Bill | NYS FY 2026 Executive Budget. In addition, Governor Gavin Newsom recently unveiled plans to boost California’s film and TV tax credit program from $330 million to $750 million, annually, aiming to usher in a new golden era of Hollywood.

To support this revitalization, the California Production Coalition (CPC) has emerged as a leading advocate for the State's entertainment industry. Bringing together key stakeholders, policymakers, and community leaders, the CPC is dedicated to preserving and enhancing California’s status as the global epicenter of film and television production.

The coalition's efforts are reinforced by collaborations with organizations like Entertainment Partners (EP), one of over 35 advisory groups committed to sustaining and expanding California’s production landscape. Through these strategic alliances, the CPC works to shape policies that benefit industry professionals, local communities, and the broader state economy.

California's incentive program and proposed expansion

California's film and television incentive program has historically played a crucial role in keeping productions within the State, offering competitive tax credits to encourage filmmakers to choose California over other locations. Considering the growing competition from other regions, Governor Newsom has proposed expanding the incentive program to provide additional funding, further strengthening the State's ability to attract and retain productions.

Between 2017 and 2024, incentive programs globally increased by 39%. Today, 120 jurisdictions around the world offer attractive incentives, many of which are larger, more efficient, and easier to use than California's program. For example:

• Georgia’s program has no cap and an effective base rate of 30%.
• New York increased its program from $420 million to $700 million in 2022, raising its base rate to 30%.
• Over a dozen states offer refundable or transferable credits, enhancing their value and reach, whereas California offers only limited refundability and transferability; although, the California credit will become a refundable tax credit for all as of July 1, 2025.

California’s program faces limitations that reduce its value:

• A relatively low 20% to 25% tax credit rate compared to the global average of 30%.
• Exclusion of all "above the line" (ATL) wages, which is a policy shared only with Texas among the top 50 programs worldwide.
• Exclusions for production categories, such as 30-minute series, animation, reality/competition shows, talk shows and post-production & VFX.
• Caps on eligible expenses at $100 million, limiting the ability to attract blockbuster and tentpole productions.

A recent poll conducted by the CPC found that 73% of California voters support Governor Newsom’s proposal to increase the State’s incentive program to $750 million a year. Public sentiment remains largely positive, with voters recognizing the significant economic contributions of the film and television industry, including job creation and tax revenue.

Last Friday, the CPC launched a statewide petition urging policymakers to approve Governor Newsom’s proposed expansion of the film and television tax credit program. The petition has already gained significant momentum, with more than 6,500 of industry professionals and supporters signing up to emphasize the critical importance of this investment. By adding your voice, you can help ensure that California remains the global hub for entertainment production.

Economic impact

Studies, including one from the Los Angeles Economic Development Corporation, have shown that every dollar spent on California’s Film and Television Tax Credit generates $24.40 in economic activity, $16.14 in GDP, and $8.60 in wages. The program has contributed $21.9 billion to the State’s economy and supported more than 110,000 jobs from 2015 to 2020. These incentives play a critical role in ensuring California remains the premier destination for film and television production.

Industry insights

Joe Chianese, Senior Vice President and Production Incentives Practice Leader at Entertainment Partners, has emphasized the importance of sustaining and enhancing California's incentive programs to remain competitive in the global marketplace. “California’s rich history in film and television has always been its competitive edge, but the global production landscape is evolving. Expanding our tax credit program to $750 million along with other competitive improvements to the program is not just necessary, it’s vital to ensuring we remain the global leader in entertainment production.”

Additionally, “California’s Film and Television Tax Credit isn’t just about attracting productions, it’s about maintaining and creating jobs, generating tax revenue, and supporting local businesses. The proposed expansion amplifies these benefits, driving economic growth for communities across the State.”

Join the effort

To learn more about the CPC and its mission to support California’s entertainment industry, visit their website. The CPC encourages industry stakeholders and companies to join their efforts in promoting a thriving production environment in California. By working together, we can ensure that the Golden State remains the premier destination for film and television production incentives.