California lawmakers have approved Governor Gavin Newsom's plan to expand the state's film and television tax credit program, increasing the annual funding from $330 million to $750 million. The measure, passed by the Democratic-led legislature, aims to boost the state's competitiveness in the entertainment industry and retain production jobs that have been moving to other U.S. cities and overseas. The expansion is expected to help restore between 4,400 and 5,500 production jobs and support a range of productions, including independent studios. Governor Newsom emphasized the program's role in maintaining California as the birthplace and ongoing home of film and television. The legislation was signed into law in early July 2025, following months of lobbying from Hollywood stakeholders and bipartisan support. The increased tax credit is projected to generate an estimated $1.1 billion in economic activity for the state. The expansion also includes amendments to modernize and strengthen the incentive program, reflecting a collective effort by government officials, industry leaders, and labor partners to revitalize California's iconic entertainment sector.