Steve Hilton Proposes Unlimited Film Tax Credits as California Gubernatorial Race Heats Up

California’s film and television sector has lost more than 50,000 jobs over the past three years as productions migrate to states and countries offering larger, uncapped incentives. Georgia, the only U.S. jurisdiction with an uncapped credit, provides a 30 % rebate and peaked at $1.3 billion in 2022 before falling to roughly half that amount. In 2025 California expanded its program, raising the annual cap from $330 million to $750 million and broadening eligibility to streaming series, animation and sitcoms. Despite a 53 % year-over-year increase in approved projects (147 in 2025), shoot days in Los Angeles County dropped 16 % from 2024 to under 20,000, and total shoot days were at least 30 % below the five-year average. Soundstage occupancy remained steady in the first half of 2025 but stayed far below levels of a decade earlier.

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• Steve Hilton – Republican gubernatorial candidate, endorsed by President Donald Trump.

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• Matt Mahan – Democratic candidate, mayor of San Jose.

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• Tom Steyer – Democratic candidate, businessman and former presidential contender.

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• Donald Trump – Endorses Hilton and promises a federal partnership.

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• Motion Picture Association and Hollywood labor unions – Met with Hilton during his announcement.

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• Jon Voight – Trump’s special ambassador to Hollywood, publicly supports Hilton.

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• Current state credit: 35-45 % of below-the-line costs, capped at $750 million annually.

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• Hilton’s proposal: eliminate the cap, raise the credit to 60 % for select productions, and guarantee a floor of 40 %. The plan would also extend the credit to above-the-line salaries for actors, directors, writers and producers.

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• Georgia’s credit: 30 % of total costs, uncapped, with a 2022 peak spend of $1.3 billion.

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• California’s production workforce is estimated to be eight to ten times larger than Georgia’s, according to the Bureau of Labor Statistics.

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Hilton argues that an unlimited subsidy, combined with a new federal credit, would bring the total rebate to 60 % and restore “leadership” to the state’s entertainment sector. He emphasizes protecting independent and mid-budget projects while cutting spending elsewhere to fund the incentive. Mahan stresses the need to keep “Hollywood in Hollywood” and questions the feasibility of an uncapped credit. Steyer supports raising the cap, opposes the Paramount-Warner Bros. merger, and frames the incentive as a tool to protect working people. The California Film Commission notes the 2025 program expansion and the resulting rise in approved projects.

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Mahan calls Hilton’s plan “unrealistic,” linking it to past unfulfilled promises. Labor unions express concern that extending credits to above-the-line salaries could divert funds from middle-class workers. Steyer warns that large studio mergers could undermine job security. Analysts note that the proposed credit could impose a significant cost on California residents, requiring offsetting budget cuts.

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• Job loss figures cite “more than 50,000” departures, but no precise count is provided elsewhere.

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• Production-day declines are reported as a 16 % drop for Los Angeles County and a 30 % drop across all categories, creating a discrepancy in scope.

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• Credit rates are described as 35-40 % in some sources and 35-45 % in others, indicating inconsistent reporting.

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• The exact fiscal impact of an uncapped credit remains unspecified.

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• “This is an emergency,” — Steve Hilton, Republican gubernatorial candidate

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• “We are allowing it to die, because other states in America and other countries are aggressively competing for the work and the jobs that go with it.” — Steve Hilton

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• “Jon actually is a friend of mine,” — Steve Hilton

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• “We need to keep Hollywood in Hollywood,” — Matt Mahan, mayor of San Jose

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• “They're basically trying to steal our industry by bribing the producers of those films to go there, and we have to respond to that,” — Tom Steyer, Democratic candidate

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The November runoff will determine whether Hilton can implement his unlimited credit and pursue a federal incentive with the Trump administration. Legislative action on the state cap and the inclusion of above-the-line costs is expected to intensify as candidates refine their platforms. Industry stakeholders will monitor the outcome for its potential impact on production volume, employment, and California’s competitive standing in the global entertainment market.

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