February 4, 2025
The Honorable Scott Wiener The Honorable Jesse Gabriel
Chair, Senate Committee on Budget and Fiscal Review Chair, Assembly Committee on Budget
1021 O Street, Suite 8620 1021 O Street, Suite 8230
Sacramento, CA 95814 Sacramento, CA 95814
SUBJECT: BUDGET PROPOSAL: FILM AND TELEVISION TAX CREDIT SUPPORT
Dear Chairpersons Wiener and Gabriel,
The California Chamber of Commerce and the undersigned are pleased to SUPPORT the Film and Television Tax Credit contained within the 2025-26 Budget proposal. The fourth version of the California Film and Television Tax Credit program was established in 2023 and allocated $330 million in tax credits per year to the film and television industry. The 2025-26 Budget proposes to increase the total annual tax credit award cap from $330 million to $750 million for the fiscal years 2025 through 2030. This tax incentive has proven effective in maintaining and growing California jobs in this specific industry.
According to the California Film Commission, the film and television industries as a whole provide over 700,000 jobs and pays nearly $70 billion in wages to California workers. California’s Film and Television Tax Credit Program contributed almost $21.9 billion in economic output over five years and supported more than 110,000 total jobs in the state, according to a study released by the Los Angeles County Economic Development Corporation (LAEDC).
The Film and Television Tax Credit Program 2.0, which ran from July 2015 through June 2020, allocated $330 million per year in tax credits to fight “runaway production” and grow film/TV production-related employment and spending across the state.
The study findings show 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), $8.60 in wages and $1.07 in state and local tax revenues. The program also returned to state and local governments an estimated $961.5 million in tax revenue.
California’s Film and Television Tax Credit Program 3.0 started in July 2020 and continued to expand upon Program 2.0’s success. Despite launching during the pandemic, Program 3.0 by and large achieved its goals, generating hundreds of millions of dollars in wages to below-the-line workers and payments to in-state vendors.
Beyond the financial impacts that are the focus of the LAEDC’s report, Program 3.0 delivered additional benefits. For example, the California Film Commission’s Career Pathways Program, which is funded entirely by projects in the tax credit program, trains entry-level workers for a wide range of production-related jobs and is very effective at reducing the economic, geographic and social barriers to career success.
For these reasons, we SUPPORT the Film and Television Tax Credit Budget proposal.
Sincerely,
Preston Young
Senior Policy Advocate
on behalf of
California Chamber of Commerce
Conejo Valley Chamber of Commerce
Glendora Chamber of Commerce
Greater High Desert Chamber of Commerce
Huntington Beach Chamber of Commerce
La Cañada Flintridge Chamber of Commerce and Community Association
Lake Elsinore Valley Chamber of Commerce
Long Beach Area Chamber of Commerce
North San Diego Business Chamber
Orange County Business Council
Rancho Cordova Chamber of Commerce
Redlands Chamber of Commerce
Ridgecrest Chamber of Commerce
Roseville Area Chamber of Commerce
Santa Barbara South Coast Chamber of Commerce
Santa Clarita Valley Chamber of Commerce
Santa Maria Valley Chamber of Commerce
Simi Valley Chamber of Commerce
Torrance Area Chamber of Commerce
United Chambers of Commerce of the San Fernando Valley
Valley Industry & Commerce Association
West Ventura County Business Alliance
