In an attempt to boost film and television production both in the US, a congressional bill is being introduced for the creation of a federal film and TV tax credit. In California, the governor has signed two bills expanding the state’s tax credit program to help retain and attract productions there, to revitalize Hollywood. Attractive tax incentives by other countries and other US states have diminished Hollywood’s star power over the years, resulting in substantial industry job losses.
It’s well known that California, particularly Hollywood—once synonymous with filmmaking—has been fighting hard to retain its status as the preferred home to film and television production, as Georgia (especially the Atlanta area) has been nipping at Tinseltown’s heels for more than the past decade. Without question, Hollywood is brimming with talent, but more and more, those involved in the filmmaking process are being lured to other states where the cost of living is far less.
Added to the mix are tax incentives offered by certain states and even other countries that are difficult to pass up, especially when film costs run in the tens of millions of dollars. The average cost to produce a feature film in 2026 is about $120 million, while a blockbuster feature typically ranges from $100 million to $300 million, making tax credits of 10%, 15%, and 20% or more a very alluring proposition. TV productions also are plagued by hefty price tags. There is more to a tax incentive than a base percentage, however, with a host of rules and exceptions that require an advanced calculus and business degree to fully understand.
While California has lost a significant number of film and TV production jobs over recent years, WrapBook and others find that California is tops among the states, with one of the largest incentive allocations in the country. (Last year, it more than doubled the annual Film and Television Tax Credit Program to $750 million, in an effort to rebuild and restore Hollywood.)
Outside the US, global film incentives, particularly those offered by Australia, Canada, and the UK through grants, rebates, and more, are luring productions out of the country.
To help bolster and retain production in the US, a bipartisan bill introduced this week calls for the creation of a federal film and TV tax credit. The Motion Picture, Television and Entertainment Revitalization Act provides a 20% base tax credit for productions (film or TV) with a budget exceeding $1 million and at least 75% of principal photography occurring within the US. The bill is inclusive of post-production and VFX work and also covers production crew expenses and above-the-line costs (for instance, actor and writer salaries).
Industry organizations such as the Producer Guild of America and the Directors Guild of America came out in support of the bill, which would make the US competitive.
Within the US, California is also taking further action to further attract and retain film and TV productions. California Governor Gavin Newsom recently signed two bills expanding the state’s tax credit program. Assembly Bill 2319 creates a post-production tax credit, and Assembly Bill 186 makes some existing film and TV credits more refundable and eases limits for some independent productions (starting next year).
Newsom issued the following statement: “California is the nation’s entertainment capital. It is the home of storytellers, dreamers, artists, entrepreneurs, and creators who define culture for the rest of the world. This legislation protects the extraordinary people who make this industry possible and makes it unmistakably clear: California is still the future of film and television. We have the talent. We have the infrastructure. We have the creative community. And we have an ecosystem that simply cannot be replicated anywhere else.”
Perhaps these pieces of legislation can stem the exodus. According to the Hollywood Reporter, over the past four years, the US has lost 73,000 production jobs, with two-thirds of them in Los Angeles. Filmmaking is Hollywood’s legacy, it’s worth the fight to save it.
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