Politics · United States · 3 hrs ago
California Lawmakers Weigh Removing Cap on Film and TV Incentives
California lawmakers have begun discussing whether to remove the $750 million cap on film and TV incentives.
At a hearing in North Hollywood, industry representatives said the current program is not enough to keep productions and jobs in the state.
Betsy Beers said a planned Grey’s Anatomy spinoff could not get a California tax credit and is now filming in Albuquerque.
Because the fund is limited, productions compete for credits and may miss out if the program is full or their application scores too low.
Supporters say an uncapped credit could make California more competitive, as Georgia has no limit and New York can draw on future allocations.
But the state faces a budget deficit and deep Medicaid cuts, and estimates of the credit’s financial return differ.
Committee chair Rick Chavez Zbur said he wants lawmakers to increase or remove the cap in the next legislative session, though he called it a difficult task.
California lawmakers have begun discussing whether to remove the $750 million cap on the state’s film and television production incentive.
Industry advocates said the capped program is not doing enough to keep production jobs in California.
Some speakers argued that removing the cap would give producers more certainty about receiving tax credits.
Lawmakers also face budget pressures, and a state economist cited research indicating that film credits return 20 to 50 cents for each dollar invested.
Committee chair Rick Chavez Zbur said he would try to make progress on increasing or eliminating the cap in the next legislative session.
- Who
- California lawmakers, including Assembly committee members, heard from union leaders and industry advocates.
- What
- They discussed removing the $750 million cap on the state’s film and television production incentive.
- When
- Thursday. The article was published on October 30, 2026.
- Where
- At an Assembly committee hearing in North Hollywood, California.
- Why
- Advocates said the capped program is not enough to stop production jobs leaving the state and makes it uncertain whether projects will receive credits.
Industry advocates
Fiscal skeptics
Program effectiveness
Industry advocates
Advocates said the capped incentive is not competitive or predictable enough to retain production.
Fiscal skeptics
The state Legislative Analyst’s Office economist cited research indicating film credits return 20 to 50 cents per dollar invested.
Removing the cap
Industry advocates
Several hearing speakers called for eliminating the cap to give producers more certainty.
Fiscal skeptics
The article reports budget hurdles and skepticism about using dynamic scoring to assess the incentive.
California doubled its film and television production incentive.
FilmLA reported that production volume continued to fall in the Los Angeles area.
California lawmakers held a committee hearing in North Hollywood on the incentive cap.
Committee chair Rick Chavez Zbur said he expected to pursue improvements to the program.
- Annual incentive cap
- $750 million
- Hearing location
- North Hollywood, California
- State economist’s estimated return
- 20–50 cents per dollar invested
- Betsy Beers’s example
- A Grey’s Anatomy spinoff is filming in Albuquerque
What people are saying
We lost a lot of time, and a lot of money, and now we are filming in Albuquerque
The program is still not competitive or predicable enough to address the loss of production to other regions
But you know that is a heavy lift.
It’s subject to a lot of uncertainty