Culture 3 min read By Mason Emerson
Hollywood unions await whether next California governor will back Newsom’s film tax credit expansion
Outgoing Governor Gavin Newsom has proposed raising California’s film and TV tax credit to at least $1 billion a year, and Hollywood labor leaders say they will reserve judgment on whether his successor will keep the effort going.
Leaders of the major Hollywood unions welcomed outgoing California Governor Gavin Newsom’s proposal to expand the state’s Film and TV Tax Credit program again, but they say they will not claim victory until his successor makes the program a priority as well.
Newsom, on the eve of the 2026 midterm elections, is calling for an increase in the state’s entertainment production incentive from $750 million in annual tax credits to at least $1 billion. The governor’s office presented the expansion as a way to keep film and television productions in California rather than letting them move to other states and countries offering richer incentives.
In a statement, union leaders thanked the governor for his commitment to the industry and its workers. At the same time, they made clear that a single governor’s proposal is not enough to secure jobs for crews, actors and other members of the workforce. Their concern is continuity: the new administration, which will take office after the November election, will have to decide whether to keep pushing for the larger program.
The proposal arrives as the state’s entertainment sector has spent several years contending with production runaways, as studios and streamers shoot in Georgia, New Mexico, the United Kingdom and elsewhere where tax breaks are more generous. Each expansion of the California program has been framed as a response to that competition, and the union leaders’ remarks suggest they view the current plan as one step in an ongoing effort rather than a final fix.
The timing is also notable. Newsom is making the announcement in the final stretch of his term, and the program’s future will depend heavily on how his successor weighs it against other budget priorities. Because the incentive is funded through annual tax credits, the actual level of support is set through decisions by the Legislature and the governor in each budget cycle.
That means a proposal to raise the cap to $1 billion must pass through lawmakers before it takes effect. The incoming governor will be the one to sign or veto any final package that reaches their desk, which is why the unions’ focus has shifted from the outgoing administration to the candidates now campaigning to replace Newsom.
Source: deadline.com
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