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California’s film tax credit boost officially signed into law to lure back Hollywood jobs

Nine months ago, Gov. Gavin Newsom pledged to more than double the annual amount of funds allocated to California’s film and television tax credit program.

Flanked by Los Angeles Mayor Karen Bass, legislative leaders and union representatives, Newsom said the state “needed to make a statement and to do something that was meaningful” to stop productions from leaving the state for more lucrative incentives in other states and countries.

Though Hollywood was born in California and the entertainment business became the state’s signature industry, “the world we invented is now competing against us,” he said at the time.

On Wednesday, Newsom signed a bill that will increase the cap on California’s film and TV tax credit program to $750 million, up from $330 million. Industry workers say the boost will help stimulate production that slowed due to the pandemic, the dual writers’ and actors’ strikes of 2023, a cutback in spending by studios and streamers and the Southern California wildfires earlier this year.

“We’ve got to step up our game,” Newsom said in a speech before he signed the bill. “We put our feet up, took things for granted. We needed to do something more bold and significant.”

The bill was passed by the state legislature last week and came after intense lobbying from Hollywood.

Rebecca Rhine, Directors Guild of America executive and Entertainment Union Coalition president, credited Newsom for staying committed to the production incentive boost even after the wildfires in Southern California, federal funding cuts, the state’s budget deficit and the deployment of the National Guard in Los Angeles.

“You understand that our industry is vital to the state’s economy and cultural vibrancy, while also sustaining thousands of businesses and attracting visitors from around the world,” she said during the signing ceremony. “Now, let’s get people back to work.”

Critics of the program and taxpayer advocates have said, however, that the tax credit is a corporate giveaway that doesn’t generate as much economic effect as promised. California’s increase also comes as states like Texas and New York have also ramped up their own film and TV tax credit programs.

But the fight isn’t over yet. Lawmakers and Hollywood industry leaders are gearing up for a vote Thursday in the legislature on a separate bill that would expand the provisions of the film tax credit program, which they say is key to making production more attractive in California and must pair with the increased program cap.

That bill, AB 1138, would broaden the types of productions eligible to apply for the program, including animated films, shorts, series and certain large-scale competition shows. It would also increase the tax credit to as much as 35% of qualified expenditures for movies and TV series shot in the Greater Los Angeles area and up to 40% for productions shot outside the region.

California currently provides a 20% to 25% tax credit to offset qualified production expenses, such as money spent on film crews and building sets. Production companies can apply the credit toward any tax liabilities they have in California.

The bump to 35% puts California more in line with incentives offered by other states such as Georgia, which provides a 30% credit for productions.

“This bill is the second step,” Assemblymember Rick Chavez Zbur said during Wednesday’s press conference. “It’s about maximizing economic impact, prioritizing equity and turning the tide on job loss.”

Newsom also held out hope for the possibility of a federal film and TV tax incentive, which he had floated in May after President Trump called for tariffs on film produced overseas.

“We’d like to see [Trump] match the ambition that we’re advancing here today in California with the ambition to keep filmmaking all across the United States, here in the United States,” Newsom said. “I am hopeful that we, in the hands of partnership, continue to work with the administration.”

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Saudi Arabia to lift booze ban at 600 tourist locations by 2026 in bid to lure in holidaymakers ahead of World Cup

SAUDI Arabia will lift its long-standing booze ban at 600 tourist sites by 2026 — in a boozy bid to attract visitors ahead of the 2034 FIFA World Cup and 2030 Expo.

In a shock U-turn, the ultra-conservative Kingdom will allow the sale of wine, beer, and cider at licensed locations including five-star hotels, luxury resorts, and expat-friendly compounds.

A hand holding a pint glass of beer being poured from a tap.

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Saudi Arabia will lift its alcohol ban ahead of the 2034 FIFA World CupCredit: Getty
Elevated view over Riyadh. Saudi Arabian capital city at night.

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The move comes as part of the Kingdom’s Vision 2030 plan to boost international tourism
Crown Prince Mohammed bin Salman at the Gulf Cooperation Council Summit.

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Crown Prince Mohammed bin Salman of Saudi ArabiaCredit: Shutterstock Editorial

Booze will still be banned in public, homes, shops, and fan zones — with spirits off the menu altogether under strict new rules.

The dramatic policy shift is part of Crown Prince Mohammad Bin Salman’s Vision 2030 drive to boost international tourism, lure foreign cash and shake off its teetotal image.

Officials hope controlled alcohol sales in glitzy areas like Neom, Sindalah Island and the Red Sea Project will help the country compete with Gulf rivals like the UAE and Bahrain — where boozing is already legal in tourist zones.

Licensed venues will operate under a tightly regulated system, with trained staff and strict rules to prevent abuse and uphold the Kingdom’s Islamic values.

The goal, authorities said, “is to welcome the world without losing cultural identity — positioning Saudi Arabia as a progressive, yet respectful player on the global tourism map.”

The plan is set to roll out in 2026 — eight years before the World Cup kicks off — and comes amid growing pressure to modernise the Kingdom’s image.

Several global hotel chains are already rejigging their blueprints to accommodate booze zones, with tourism bosses eyeing a flood of new jobs and international investment.

It follows a dry storm earlier this year when Saudi’s ambassador to the UK announced alcohol will be banned entirely at the 2034 World Cup, sparking fury among England fans.

Prince Khalid bin Bandar Al Saud told LBC radio in February: “There is no alcohol at all, rather like our weather, it’s a dry country.

Saudi’s plan for $5b world’s tallest skyscraper twice the height of Burj Khalifa

“Everyone has their own culture. We’re happy to accommodate people within the boundaries of our culture but we don’t want to change our culture for someone else.

“It is not a Saudi event, it is a world event and, to a large extent, we will welcome everyone who wants to come.”

Fan Tim Bailey fumed on X: “Their country, their rules. But why the f*** would anyone want to go there anyway?”

One supporter added: “Weird . . . they always want everyone else to change their culture for them.”

But now, Saudi insiders hope the new booze policy will silence critics and show the country is ready to party — with limits.

Nighttime view of Dubai's illuminated skyline, including the Burj Khalifa.

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Officials hope easing the ban will allow the country to better compete with Gulf neighbours such as the United Arab Emirates (pictured)Credit: Getty
EHG0E8 Chi nightclub in Dubai.

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In Dubai, for instance, boozing is already legal in tourist zonesCredit: Alamy

Sources say the model is inspired by successful alcohol rollouts in Dubai and Manama, where tight control has boosted tourism and business without trashing tradition.

The Kingdom insists this will not be a free-for-all — and anyone caught misusing the system will face swift consequences.

“Sales will only happen under controlled environments, with licensed service staff and clear operational rules in place to make sure alcohol is handled responsibly and respectfully,” a government statement read.

Spirits and hard liquor above 20% ABV will remain banned, with no sign of shops, takeaways or home brewing being permitted.

Why is alcohol banned in Saudi Arabia?

ALCOHOL is banned in Saudi Arabia because the country’s legal system is based on Islamic law, or Sharia, which strictly prohibits the consumption, sale, and possession of alcohol.

This ban stems from Islam’s teachings, particularly the Qur’an, which considers intoxicants to be haram, or forbidden.

Verses in the Qur’an warn against the use of alcohol, culminating in a clear directive for believers to avoid it altogether.

Saudi Arabia follows a strict interpretation of Sunni Islam known as Wahhabism, which enforces these religious prohibitions through law.

As a result, producing, importing, or drinking alcohol is illegal and punishable by harsh penalties, including fines, imprisonment, deportation for foreigners, and formerly, public flogging.

The ban is also deeply rooted in the country’s conservative social norms, where alcohol is associated with immoral behavior and societal disruption.

The ruling Saudi royal family also relies on support from the religious establishment, and maintaining the alcohol ban reinforces their political legitimacy and alignment with Islamic values.

While recent reforms under the Vision 2030 initiative are pushing for modernization, including a controlled rollout of alcohol sales in tourist areas from 2026, the core prohibition remains firmly in place to preserve cultural and religious identity.

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