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Newsom Proposes $5 M Film Credit Cap, Sparks Job Threats

6/19/2026

50 5 Full Breakdown

Summary

Story summary

Governor Gavin Newsom proposed film credits capped at 50% of liability or $5 million.
A coalition of Picture Association and unions warned on June 8 that the cap threatens tens of thousands of jobs and undoes $750 million film incentive expansion.
Budget limits credit use to $5 million for three years and sets a 70% cap from 2030.
Film credits become refundable in 2025, but older credits may expire unless made refundable or transferable.

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Story summary

Governor Gavin Newsom proposed film credits capped at 50% of liability or $5 million.
A coalition of Picture Association and unions warned on June 8 that the cap threatens tens of thousands of jobs and undoes $750 million film incentive expansion.
Budget limits credit use to $5 million for three years and sets a 70% cap from 2030.
Film credits become refundable in 2025, but older credits may expire unless made refundable or transferable.