California has significantly expanded its film and television tax credit programme: From 1 July 2025, up to 750 million dollars will be available annually - more than twice as much as before. The aim is to keep productions in California instead of losing them to cheaper locations such as Georgia or New York.
A glimmer of hope for Hollywood - but how sustainable is it?
After years of production cancellations, strikes and job losses, many filmmakers are hoping for a fresh start. In 2024, Los Angeles recorded the second-lowest number of shooting days ever, and over 17,000 jobs have been lost in the industry since 2022. Trade unions praise the new funding programme as a job engine. Opponents, on the other hand, doubt the benefits for the economy as a whole and criticise the high burden on the state budget.
Some fear that the funding will mainly benefit large studios - without solving the underlying problems: high production costs, slow bureaucracy and increasing safety concerns in major cities like LA.
Higher individual subsidies and more variety
In addition to the increased overall budget, an accompanying bill (AB 1138) also provides for an increase in individual subsidies: Up to 35 % of production costs in Los Angeles and even up to 40 % in economically disadvantaged regions can be reimbursed. New additions include animated films, short series formats and selected documentary projects in order to promote more diversity and smaller productions.
Funding approval for 48 projects - with a focus on independent productions
In the latest funding round, 48 film projects were approved - including 43 independent productions. These are expected to bring a total of around 664 million dollars into the Californian economy and secure thousands of jobs. Although some major productions such as TriStar's "One of Them Days" are included, the majority of the funding goes to smaller films that are often shot outside L.A. - where additional bonus incentives are available.
Old problems remain: Bureaucracy, costs, competition
Despite the new funding, the situation remains tense. FilmLA's approval system in particular is criticised for being slow and expensive. The high costs for personnel and technology in California also make it difficult to compete with locations such as Georgia or Eastern Europe. Many studios have already opened up alternatives abroad during the strikes - and could stay there in the long term.
Nationwide solution required
Some industry representatives are now calling for a national strategy - such as tax breaks at federal level or even punitive tariffs on content produced abroad. Although such measures are considered politically unlikely, they show how much concern there is for the future of the US film industry.
Conclusion: A step in the right direction - but no panacea
California's tax incentive programme is an important signal for the industry, but it is not a panacea. Without structural reforms - particularly with regard to permits, safety and production costs - the programme threatens to become a short-term band-aid. Only if California is once again seen as a reliable and efficient location can Hollywood be strengthened in the long term.
FILMTAKE reports in detail.