With Paramount remaining in Los Angeles and lawmakers at both the state and federal levels advocating for greater film tax credits, there’s a renewed sense of optimism among Hollywood insiders.
This past Wednesday, California Governor Gavin Newsom underscored the state’s initiatives to strengthen its entertainment sector. These include a new post-production tax credit, an expanded film and television tax credit, and new measures to protect performers from the use of AI-generated content.
“California is undeniably the home of entertainment,” Newsom stated. “We’re committed to not just preserving that legacy, but also investing in its future through the expansion of our film and television tax credit, the launch of a new post-production credit, and ensuring that performers are protected in this AI age.”
He further mentioned the importance of supporting independent filmmakers and emerging storytellers by providing them with genuine opportunities to create and produce in California. “More productions mean more jobs and more California narratives told by local talent,” he added.
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On the federal side, a bipartisan group is advancing legislation for a tax credit aimed at film and television productions. This proposed bill is expected to be presented in Congress by early November, with hopes to pass it by December 11, before the current congressional session wraps up. If approved, the tax credit would begin in 2027 and could complement state production incentives.
Interestingly, this initiative has garnered support from both sides of the political aisle, including Sen. Adam Schiff, a notable critic of former President Trump, who has nonetheless aligned with him on this issue. “I strongly agree with the President,” Schiff expressed on social media. “Congress should act swiftly to approve a federal film tax incentive to restore these valuable jobs that we’ve lost to other nations.”
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Filmmaker Paul Kampf, who has three decades of experience in the industry, described California’s new incentives as “a promising beginning.”
“Regardless of where you shoot your film—be it Georgia, Delaware, Puerto Rico, or even Europe—conducting post-production in California retains jobs here, particularly for independent films,” Kampf told Fox News. “We should encourage filmmakers to remain in the U.S. and also attract international filmmakers to do their post-production work in California.”
Having produced multiple films and a documentary in Serbia, Kampf is currently working on a project there titled “Harvest.” He faced complications when a Serbian government-owned company released his film in Eastern Europe without his consent. “This situation highlights the importance of protecting American filmmakers and incentivizing them to work here,” he remarked.
In California, 35 films, including 28 independent projects, have received production incentives. Notable projects include the sequel to Lionsgate’s hit film “Michael” and a new release from Pixar.
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The California Film Commission estimates that these projects could generate over $1 billion in direct production spending.
“Through our tax credit program, we’re facilitating the creation of these stories, while ensuring the jobs, investments, and production remain in California,” Colleen Bell, the Commission’s director, stated.
Kampf, who has worked in various countries, pointed out that California has often been overly confident about its filmmaking dominance. “I’ve filmed across the globe, yet I don’t shoot in LA. I live here, I know the taxes and the lifestyle challenges,” he noted. “Hollywood needs to revitalize its image, and not just in a cosmetic sense. It needs to be viewed as a place rejuvenating and investing in filmmaking.”
“Realistically, I’d say that the current tax incentives in America might be the most successful bipartisan entertainment initiative I’ve seen in a decade.”
