Entertainment

California film tax incentives get a $750 million Hollywood push

Colleen Bell says California’s expanded film credit is meant to keep production jobs in-state as Los Angeles filming struggles.

Georgia Hale

By Georgia Hale · Staff Writer

3 min read

California film tax incentives get a $750 million Hollywood push
Photo: Variety

California film tax incentives are getting a sharper sales pitch from the state’s top film official, who says the expanded program is about keeping crews, stages and production spending close to Hollywood.

Colleen Bell, director of the California State Film Commission, discussed the state’s fight to hold on to film and TV work on Variety’s “Strictly Business” podcast, where she framed the credits as an employment tool for the entertainment business.

Bell said California has been in a “seminal moment” for the industry and argued that many productions still want to work in the state. “Public policy needs to evolve to meet the moment,” she said on the podcast.

The backdrop is a tough one: Variety reported that Los Angeles County has been hit by a steep drop in production activity, while other states and countries compete aggressively for shoots through their own tax credit programs.

How much are California film tax incentives worth now?

California’s annual film and TV production incentive program was raised to $750 million from $330 million, according to Variety. The increase became law in July 2025 after work by Bell and others in Gov. Gavin Newsom’s administration to build support in Sacramento.

A production tax credit lets eligible film and TV projects reduce tax liability in exchange for spending money in a location. States use the programs to attract production work, from soundstage crews to vendors and local businesses tied to a shoot.

Bell said lawmakers outside the traditional Hollywood orbit have become more aware of how production spending spreads through communities. Research from the California Film Commission found that every dollar issued as a production tax credit generates $24.40 in economic activity from producers, according to Variety.

“There is a much stronger understanding of the utility of tax credits and that they are an investment,” Bell said. “And when we invest in the industry, the industry invests back in us.”

The political push has also included efforts to widen the benefit beyond the Los Angeles production core. Bell said the state offers extra incentives, or “uplifts,” for projects that film outside the Thirty Mile Zone, a measure she said has helped expand opportunity.

Bell, who was appointed California’s film chief in May 2019, said the updated program drew bipartisan backing after many conversations about the industry’s importance to the state.

She described entertainment as California’s “legacy industry” and said credit programs like the state’s are “jobs programs” designed to keep skilled entertainment workers employed in California.

Bell also said the conversation in Sacramento has changed in a major way, with more lawmakers now treating production incentives as a tool for preserving California’s place in film and television.

The comments were made on the latest episode of Variety’s “Strictly Business,” part of the “Daily Variety” podcast feed, which focuses on entertainment business news and industry figures.

This story draws on original reporting from Variety.