California lawmakers have approved an expansion of the film and TV tax credit program, citing job creation as its main goal. The $750 million increase is expected to generate 40-50% more direct employment, or around 4,400 to 5,500 jobs.
However, experts disagree on the program’s impact on job losses in California’s entertainment industry. The state has lost about 40,000 film and video production jobs since 2022, with many union members reporting a significant decline in work hours.
The expansion may not be enough to reverse the downturn, but it aims to stem the slide in jobs and bring some back. Critics argue that the program simply crowds out other activities, while proponents claim it will attract big-budget films that create more jobs.
A study by the Milken Institute estimates that the expansion could result in an additional 14,886 jobs, but this figure is disputed. Experts believe that measuring the program’s impact is complex and difficult, with some arguing that the state’s economy overall has not seen a significant benefit from film incentives.
The Los Angeles assemblyman leading the effort to expand the tax credit argues that it will help retain existing workers, who would otherwise continue to lose hours due to the high cost of living in Los Angeles. Critics point out that California pays lower wages per job compared to states like New York and Georgia, which may drive productions abroad.
The expansion is seen as a necessary step, despite its limitations, and aims to attract more big-budget films that create jobs for thousands of workers.
Source: https://variety.com/2025/film/news/california-film-credit-expansion-jobs-1236414175