Gavin Newsom pitches $1 billion Hollywood tax break including credits for movie stars salaries

California Gov.Gavin Newsom wants to shower Hollywood with at least $1 billion in annual tax credits — including new breaks for productions covering movie stars’ salaries.Newsom, who has just two months left in office, proposed boosting California’s film and television tax credits Monday, making another costly push to keep Hollywood productions in the state.The Democrat wants to go beyond the $750 million annual program he secured last year, expanding eligibility to include movie stars’ salaries and extending the incentives through 2040 — long after his likely successor, Xavier Becerra, takes over.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story The proposal would allow qualifying productions to claim credits for so-called above-the-line compensation, including pay for actors, directors, writers and producers.

The tax benefits would be subject to caps.“California created the modern entertainment industry; we’re the capital of entertainment and we’re going to keep it here,” Newsom said in a statement Monday.The governor said the proposal is designed to “maintain the momentum” of last year’s tax credit expansion, and he reiterated his call for Congress to pass the Motion Picture, Television, and Entertainment Revitalization Act, saying that “states can’t shoulder the cost alone.”Newsom initially proposed increasing the annual allocation from $330 million to $750 million in October 2024.He and lawmakers delivered that expansion last year, more than doubling the available credits.A Los Angeles County report released this August said California had lost 52,016 film and television jobs since 2022, nearly all in Los Angeles County.Warnings that Hollywood could become the next Detroit intensified in the spring of 2025, as Los Angeles-area on-location pr...