California’s film and TV tax credit is working, but federal help is needed, lawmakers say

Published on March 23, 2026

California’s film and television industry is benefiting from its existing tax credit program, yet many lawmakers believe more needs to be done to secure the future of productions in the state. The state’s film and TV tax credit has been pivotal in attracting and retaining film projects, but with increasing competition from other states and countries offering more lucrative incentives, there is a growing call for enhanced support.

Senator Adam Schiff has taken a significant step forward a federal-level tax credit aimed at bringing productions back to the United States. This initiative highlights the urgency lawmakers feel to maintain California’s status as the hub of the film industry. Schiff stressed that while the state tax credits have made a positive impact, they are limited in scope and effectiveness compared to the more extensive tax incentives offered .

The federal tax credit proposal is seen as a way to not just sustain, but invigorate, local economies that thrive on the entertainment sector. In recent years, states such as Georgia and New York have ramped up their own incentive programs, drawing productions away from California, leading to concerns about job losses and reduced tax revenues in the Golden State.

Industry experts have voiced support for Schiff’s initiative, arguing that a federal tax credit could level the playing field, encouraging filmmakers to remain in or return to the U.S. This could also foster job creation in various sectors associated with film production, including those in construction, hospitality, and transportation.

As discussions around the federal proposal continue, lawmakers and industry advocates are hopeful that such measures will reinforce California’s dominance in the film industry while ensuring that local stakeholders benefit from renewed investment in the sector. The outcome of this proposal could have significant implications not only for California’s economy but also for the future landscape of the film and television industry across the nation.