Newsom proposes raising California's film and TV tax credit to at least $1 billion a year

The plan would also make above-the-line pay, such as compensation for leading talent, a qualified expense, extend the program's sunset from five to 10 years, add a 5% credit boost for companies that commit to at least two qualifying productions in the state, and raise independent film funding to $100 million a year, up $26 million, according to Deadline. "At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry," Newsom said. He also called on Congress to pass a national film and TV tax credit.

The term-limited governor made the proposal a day before California votes for his successor, and the next round of incentives would need action in Sacramento, The Hollywood Reporter reported. The state raised the program from $330 million to $750 million a year last year.

Why it matters: California led New York in production spending over the past 12 months, $6.06 billion to $4.63 billion, but New York's spending is growing faster, according to industry tracker ProdPro data cited by The Hollywood Reporter.