Film Tax Credit Expansion to Generate $6.6 Billion in Economic Impact

In the first year since expanding, the California Film and Television Tax Credit program is expected to bring $6.6 billion in economic activity and tens of thousands of film jobs to the state.

The tax incentive was expanded last year after the passage of California Chamber of Commerce-supported AB 1138. The Cost Cutter bill raised the annual cap on the program from $330 million to $750 million through the year 2030. It also included a diversity workplan provision and increased training funds for the Careers Pathway Program.

The bill was signed into law by Governor Gavin Newsom and the newest iteration of the program, Program 4.0, began July 1, 2025. CalChamber also supported an extension of the credit program for five years to 2030 that was included in the 2023–24 state budget proposal.

Expanded Program

Program 4.0 has awarded a total of 170 film and television projects. Collectively, they represent $6.6 billion in direct production spending and $4.3 billion in qualified in-state spending, which includes $2.58 billion in qualified wages.

The projects also are expected to create 34,921 cast and crew jobs, while also employing 212,065 background performers. Productions are expected to create 6,630 total California filming days, including 1,351 out-of-zone filming days.

The governor’s office said the 41 new projects awarded under the program this month include DreamWorks Animation’s “DONKEY,” Disney’s “Hexed,” and “Gingerbread Men” from Artists Equity.

This round of projects will deliver $1.1 billion in direct production spending and $544 million in qualified spending, including $352 million in qualified wages. They will employ 6,198 cast and crew members, as well as 13,153 background actors. The projects will have 993 total California shooting days, including 403 out-of-zone filming days.

The latest round of awards marks the close of the first year of Program 4.0. Applications were up 82% compared to the previous year.

In the TV category, 20 new series and six pilots received tax credits this year compared to only eight new series during the last year of Program 3.0, which started in 2020. Several series are relocating production to California.

In the film category, feature film shoot days increased more than 45% compared to the previous quarter and more than 52% year over year.

Economic Benefits

Since the program began in 2009, the tax incentive has generated more than $34.2 billion in economic activity and supported more than 243,000 cast and crew jobs, according to the California Film Commission.

A study from the Los Angeles County Economic Development Corporation shows that for every tax credit dollar allocated, the state benefitted from at least $24.40 in economic output, $16.14 in gross domestic product (GDP) and $8.60 in wages.