California and Washington Push New Tax Breaks to Keep Film Jobs in Los Angeles
California and Washington Push New Tax Breaks to Keep Film Jobs in Los Angeles

Business

California and Washington Push New Tax Breaks to Keep Film Jobs in Los Angeles

California is rolling out new film and post-production tax credits as federal lawmakers push a separate bipartisan incentive bill, developments that industry figures say are giving Hollywood new hope after Paramount decided to stay in Los Angeles.

California Gov. Gavin Newsom on Wednesday announced a fresh round of incentives meant to keep film and television production in the state, including a new post-production tax credit, an expanded film and television tax credit, and new protections for performers against AI-generated content.

“California is the home of entertainment, full stop,” Newsom said in a statement. “We’re not just protecting that legacy; we’re investing in its future by expanding our film and television tax credit, launching a new post-production credit and standing up for performers in the age of AI.”

“We’re making sure independent filmmakers and the next generation of storytellers and creators have a real shot to build, hire and produce right here in California,” he added. “More productions, more good jobs, more California stories told by California workers.”

The state announcement comes as Paramount has decided to remain in Los Angeles and as a bipartisan group of lawmakers in Washington works on a separate federal tax credit for film and television productions. That bill is expected to be introduced in Congress in early November, with supporters hoping for passage by Dec. 11, before the current Congress wraps its work. If approved, the credit would take effect in 2027 and could be combined with state incentives.

The federal push has drawn backing from President Donald Trump as well as Sen. Adam Schiff, D-Calif., who led the first impeachment effort against Trump and has remained a frequent critic of him.

“I am in strong agreement with the President,” Schiff said on X. “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.”

A ‘really good start,’ filmmaker says

Paul Kampf, a filmmaker with 30 years in the industry, called California’s new incentives “a really good start.”

“No matter where you make your film, whether it’s Georgia, Delaware, Puerto Rico or Europe, if you can do your post-production in California, you’re keeping jobs here, especially in independent films,” Kampf told Fox News Digital. “We should be incentivizing filmmakers in America to stay in America. And we should also incentivize filmmakers who are outside of America to do their post here.”

Kampf has produced four feature films and a documentary in Serbia and is working on a sixth project there, titled “Harvest.” He said a company owned by the Serbian government released the film in Eastern Europe without his permission.

“This film is an example of what happens if we don’t protect Americans and entice Americans to film here,” Kampf said.

35 films tapping state incentives

According to the California Film Commission, 35 films, including 28 independent projects, have received production incentives for filming in the state. Among them are the sequel to Lionsgate’s 2026 hit “Michael” and a new Pixar film. The commission estimates the projects will generate more than $1 billion in direct production spending.

“Through our tax credit program, we’re helping bring these stories to the screen while keeping the jobs, investment and production that bring them to life right here in California,” Colleen Bell, director of the California Film Commission, said Wednesday.

Kampf, who has made films around the world, said California had grown complacent about its place in the industry.

“I’ve made movies all over the world. I don’t make movies in LA. I live here. I lived the taxes of LA and California, and I live the sort of challenges of lifestyle here,” he said. “I think Hollywood needs a facelift, and it’s no pun intended. It needs to be seen as a place that is invigorating and investing in filmmaking again.”

“Realistically, what I can say is the tax incentives in America are really maybe the best bipartisan entertainment bill that I’ve seen in the last 10 years,” he added.

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