The California Production Coalition, a group of 33 film, television and streaming production businesses and associations, has just launched with the stated mission of bucking up the state’s “outdated and underfunded” production tax credit program that’s been steadily losing business to rivals.
Tax incentives from Canada to Georgia to the UK have taken a massive bite out of production in the home of Hollywood where even major studios now look elsewhere to shoot on many projects. The Coalition launches as Gov. Gavin Newsom is pushing to increase California’s incentive under the Film & Television Tax Credit Program to $700 million annually, a massive increase from the current $330 million, as motion picture production faces increasingly stiff competition from rival jurisdictions that offer larger and more flexible incentives.
The increase, announced Oct., 27, is subject to approval by the Democratic majority legislature in the Golden State’s 2025-2026 budget.
The new coalition’s founding members including the MPA and local vendors and businesses.
“We must not take California’s film industry for granted and expect to stay competitive in the global entertainment industry without a competitive tax credit program,” said Pam Elyea, owner of History for Hire, a family owned prop rental company in a statement announcing the group.
Kavon Elhami, CEO of Camtec Motion Picture Camera Systems, called it “essential that we come together now to ensure California remains the hub of the motion picture industry. That’s why we’re joining this coalition, united in our commitment to supporting film, television, and streaming production right here in our state.”
Motion Picture Association chairman and CEO Charles Rivkin said the MPA and its members “are proud to stand with California businesses to highlight how our creative community can grow its meaningful contributions and build a stronger foundation for film and television production in the state.”
The Coalition marked its launch by releasing an independent poll of 1,500 registered California voters finding that 73% of voters support Governor Gavin Newsom’s proposal to increase the state’s incentive program to $750 million in tax credits a year.
Those findings are bolstered by earlier studies documenting the clear economic benefits of local production incentive programs, including a Los Angeles Economic Development Corporation study finding that every dollar of California incentives delivers a return of $24.40 in increased economic activity, $16.14 in GDP, and $8.60 in wages.