Newsom wants to increase Hollywood tax credits to $750 million

Topline:

Gov. Gavin Newsom on Sunday announced plans to expand the state's tax credit for the film and television industry to $750 million.

Why it matters: Film and television production in California has been slow to rebound after the COVID-19 pandemic and Hollywood strikes last year. California's current tax credit for film production is capped at $330 million. It was last expanded by the legislature in 2014.

The backstory: Many Hollywood stakeholders, including the permitting agency FilmLA, have supported the tax credit expansion.

Competition from other states: California has been competing more and more with other filming locations, like Georgia, New York and New Mexico. If approved by the California legislature, this would be one of the biggest film and TV tax credit programs in the nation. Some states do not place a limit on their incentive programs.

“This is about jobs … the world we created is now competing against us," Newsom said at a news conference. "This is about investing in the future of this industry and the future of this state."

What's next: The expansion will be part of Newsom's proposed budget for January, which will need to be approved by the legislature before being enacted.