tv tax credit program

Trump again threatens 100% tariff on movies made outside the U.S.

President Trump again suggested that films made outside the U.S. should be subject to a 100% tariff, a move he said would help rejuvenate film production in America but that has been greeted with skepticism by many in Hollywood.

“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” Trump wrote in a post Monday morning on his Truth Social platform. “California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.”

The post did not include details on how such a tariff would work or how it would be levied. The White House did not immediately respond to a request for comment.

This is not the first time Trump has floated a tariff on films made overseas to combat so-called runaway production.

In May, Trump said he was authorizing the Commerce Department and U.S. Trade Representative to begin the process of instituting a 100% tariff on “on any and all Movies coming into our Country that are produced in Foreign Lands.”

That announcement surprised studio executives, who said at the time that they had no advance notice of the move. Shortly after, California Gov. Gavin Newsom reached out to the White House, offering to work together to create a federal film tax incentive, which many in the industry have said they would prefer over a tariff.

Newsom responded to Trump’s dig by sharing on X a screenshot of a news headline detailing the recent increase in applications for California’s revamped film and TV tax credit program next to a headline about Hollywood studios’ stock performance after Trump’s initial call in May for a 100% tariff on films made outside the U.S. “Almost like we know what we’re doing,” Newsom wrote in his post. “Almost like Donald Trump absolutely does not.”

Countries including Canada, the U.K. and New Zealand have developed generous film tax credit programs, which, along with lower costs, have increasingly lured productions out of the U.S. California has been particularly hard hit by the production exodus.

In response, states have also upped their individual tax credit programs, including California, which has now more than doubled the annual amount allocated to its film and TV tax credit program and expanded its eligibility criteria.

The Motion Picture Assn., the lobbying arm of Hollywood’s major studios, was not immediately available for comment.

On Monday, California congressional representatives reiterated their support for a federal film tax incentive program to support the U.S. film business.

Noting that a tariff could have “unintended and damaging consequences,” Sen. Adam Schiff (D-Burbank) said he was “ready to work with this administration” and colleagues “on both sides of the aisle” to pass a major federal film tax credit.

The California senator is currently working on a proposal for a federal film incentive, a Schiff spokesperson said.

Rep. Laura Friedman (D-Glendale), a former film producer, also called for movement on a federal tax incentive, saying that a 100% tariff on films made overseas would only increase costs for consumers.

“I’m relieved President Trump recognizes that we are losing a signature American product: the domestic film and TV industry,” she said in a statement. “I hope the President will join us in pioneering a real solution that levels the playing field with international competition.”

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22 TV series will receive a California film tax credit

Nearly two dozen television shows will receive incentives for shooting in California — including two series that relocated from Texas and Canada — in the first award period since the state bolstered its film and TV tax credit program earlier this summer.

The 22 shows were chosen amid a massive amount of interest in the state’s incentive program, which now has an annual cap of $750 million, up from $330 million. In this round, the California Film Commission saw a nearly 400% increase in applications, said Colleen Bell, the agency’s executive director.

“These enhancements to our program, they’re not just about curbing runaway production,” she said in an interview. “We’re building momentum to grow and expand production here in California.”

In total, the 22 shows were allocated $255.9 million in credits and are expected to generate about $1.1 billion of economic activity in California, she said. The productions are estimated to employ 6,500 cast and crew members and more than 46,000 background actors.

Of the 22 awarded series, 15 were new projects, five were recurring shows and two relocated from outside of California, including Tom Segura’s darkly comedic Netflix series “Bad Thoughts,” which previously filmed in Texas.

Apple TV+ comedy “The Studio” and legal thriller “Presumed Innocent” received production incentives, as did CBS’ “NCIS: Origins,” a new HBO series by comedian Larry David, a pilot called “Group Chat” from “black-ish” creator Kenya Barris and a new Hulu drama from Dan Fogelman of “Paradise” and “This is Us.” All of the qualified projects that applied were able to get a tax credit in this round, Bell said.

“California has long been the entertainment capital of the world — and the newly expanded film and TV tax credit program is keeping it that way,” Gov. Gavin Newsom said in a statement. “We’re not just protecting our legacy — we’re reminding the world why the Golden State remains the beating heart of film and television.”

Newsom called for an expansion of the state’s film and TV tax credit program late last year in an attempt to stem the tide of productions moving to other states or countries with lucrative incentive packages. Hollywood studios, producers, unions and other workers rallied around the issue for months, traveling up to Sacramento to lobby legislators about the importance of the entertainment industry to California’s economy.

In addition to the higher cap, the revamped program broadened the types of productions eligible for incentives, including half-hour television shows, certain large-scale competition shows and animated shorts, series and films.

For this round of incentives, the California Film Commission was able to consider all of the new categories except for animated shows and large-scale competition shows because those require new regulations that are being drafted, Bell said. Those categories could be eligible starting early next year, she said.

The new program provisions also upped the tax credit to as much as 35% of qualified expenditures for productions filmed in the greater Los Angeles area, and up to 40% for projects shot outside the region. For this application period, most of the series will shoot in the L.A. area, except for four that will shoot at least partially outside of that zone, Bell said.

“People want to shoot their projects here in California,” Bell said. “Now, decision makers are giving California a second look because we have made these important programmatic changes that have made us much more competitive with other jurisdictions.”

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48 films selected for California film and TV tax credit program

The latest round of California’s film and television tax credit program will provide government incentives to 48 upcoming projects, according to the California Film Commission.

The slate, which includes both major studio projects and independent films, is expected to employ more than 6,500 cast and crew members and 32,000 background performers, measured in days worked. These projects will pay more than $302 million in wages for California workers, the commission said Monday.

The projects are estimated to collectively generate $664 million in total spending throughout the state.

Of the awarded films, five are features from major studios, including the sequel to Sony Pictures’ “One of Them Days,” which is expected to receive almost $8 million in tax credits and spend $39 million in qualified expenditures.

An untitled Netflix project, which is set to film in California for 110 days, is expected to receive the largest credit of the slate at $20 million.

The rest of the awarded projects are independent, with 37 of them operating on budgets under $10 million. More than half of the films will be shot in the Los Angeles area, the commission said.

“California didn’t earn its role as the heart of the entertainment world by accident — it was built over generations by skilled workers and creative talent pushing boundaries,” Gov. Gavin Newsom said in a statement. “Today’s awards help ensure this legacy continues, keeping cameras rolling here at home, supporting thousands of crew members behind the scenes and boosting local economies that depend on a strong film and television industry.”

The announcement comes as the industry has expressed concern over the amount of production fleeing California in favor of other states or countries that offer more attractive tax incentives.

Late last year, Newsom proposed an increase to the state’s film and TV tax credit, upping the annual tax credit allocation from $330 million to $750 million in an attempt to keep production in California.

In March, the commission announced it was selecting a record 51 projects with tax incentives, marking the most amount of awarded films in a single application window.

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