California lawmakers have approved a substantial expansion of the state's Film and Television Tax Credit Program, increasing its annual funding from $330 million to $750 million. The measure, championed by Governor Gavin Newsom and passed by the Democratic-led legislature, aims to revitalize Hollywood production and preserve jobs in the film and television industry. The increase more than doubles the previous cap and is expected to restore between 4,400 and 5,500 production jobs. The expanded tax credit is designed to attract more TV shows and film projects to California, including independent productions, with an estimated $1.1 billion in new economic activity for the state. Governor Newsom emphasized that this move reflects a commitment to maintaining California as the birthplace and ongoing home of film and television production. The legislation was signed into law in early July 2025, following months of lobbying by industry stakeholders. The expansion is also part of a broader budget agreement that includes scaling back free health care for undocumented immigrants. Industry groups such as SAG-AFTRA have expressed support for the modernized incentive program, which is expected to bolster working Californians, small businesses, and local communities tied to the entertainment sector.