California expects its expanded film and television tax credit programme to generate an estimated $6.6 billion in economic activity, underscoring how governments worldwide are increasingly using tax incentives to attract productions, create jobs and strengthen their creative industries.
The latest round of the programme will support 41 film and television projects, including productions such as Tracker and Gingerbread Men, with state officials saying the investments are expected to create thousands of union jobs while boosting businesses across the production supply chain.
The announcement comes as film production in Los Angeles shows signs of recovery after years of decline.
According to state data, Los Angeles recorded 5,121 shoot days in the first quarter of 2026, up 10.7% from the previous quarter. Television drama production rose more than 40% quarter-on-quarter, while feature film shoot days increased by more than 45%.
California Governor Gavin Newsom said the expanded tax credit programme was already producing measurable economic benefits.
“The first year of the expanded tax credit program is already delivering results, generating billions in economic activity, creating opportunities for businesses and the workforce, and bringing more productions home to California.”
Los Angeles Mayor Karen Bass said the programme demonstrates the economic value of investing in the entertainment industry.
“With an expected $6.6 billion in economic impact for California, the expanded Film and TV Tax Credit is proof that when we advocate for our entertainment industry, we create real economic opportunity.”
Bass said she would continue pushing for an uncapped state tax credit and a federal incentive to strengthen the industry’s competitiveness.
California’s latest expansion reflects a broader global trend in which governments are using tax rebates, production incentives and grants to attract film and television projects.
Countries including the United Kingdom, Canada, Australia and South Africa, as well as several U.S. states, have expanded production incentives in recent years as competition for international productions intensifies.
Supporters argue that such programmes generate employment across construction, hospitality, transport, visual effects, post-production and tourism, while critics question whether governments always recover enough tax revenue to justify the subsidies.
For California, where the entertainment industry remains one of the state’s largest employers and exporters, officials say the incentives are aimed at reversing years of productions relocating to lower-cost jurisdictions.
Why it matters
The announcement highlights the growing importance of the creative economy as an economic development strategy. Rather than treating film solely as culture, governments increasingly view screen production as an industry capable of attracting investment, supporting skilled jobs and stimulating wider economic activity.
The trend could offer lessons for emerging production hubs—including Nigeria, home to Nollywood—as countries compete for a larger share of the global film and television market.
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