by Julia Pierrepont III
LOS ANGELES, May 8 (Xinhua) -- After years of runaway production, pandemic disruptions and strike-related slowdowns, the western U.S. state of California is betting that bigger, more flexible tax incentives will bring cameras -- and paychecks -- back to Hollywood.
In 2025, California raised the annual cap of its Film and Television Tax Credit Program to 750 million U.S. dollars for the next five years, up from 330 million dollars.
A previous analysis by the Los Angeles County Economic Development Corporation found that for every dollar in tax credits allocated through the program, the state saw at least 24.4 dollars in economic output, 16.14 dollars in GDP and 8.6 dollars in wages -- figures frequently cited by state leaders to argue that the incentives amount to economic development, not just industry support.
The tax credit expansion is championed by California Governor Gavin Newsom and Los Angeles Mayor Karen Bass as a boost for jobs and small businesses.
The entertainment industry "touches our city in so many different ways," Bass said, from actors, directors, writers and stagehands to flower stores, carpentry shops and restaurants.
Newsom said the program will help the state compete with other states and countries offering richer subsidies and lower costs, keeping production at home and generating thousands of good-paying jobs.
Early signs suggest the strategy may be starting to work as state officials and industry monitors point to a larger volume of applications and approvals.
In late April, Newsom's office said that since the program's expansion, the California Film Commission has approved tax credits for 147 productions, representing 5.5 billion dollars in economic activity and more than 21,000 cast and crew jobs statewide.
The governor has also announced a new round of tax credits for 38 projects expected to generate nearly 800 million dollars in economic activity, with more than 460 filming days planned outside the traditional Los Angeles studio zone.
FilmLA, the agency that issues permits for filming in Los Angeles, told Xinhua that it approved 5,121 days of on-location shooting in the first quarter of 2026, up from the previous quarter, though still below longer-term averages.
"California remains the entertainment capital of the world -- and we're making sure it stays that way," Newsom said.
Similarly, Bass said, "We have a long way to go, but after years of decline, Hollywood is finally turning a corner with more productions and more jobs." ■
