Candidates Matt Mahan – Katie Porter – Xavier BecerraCalifornia’s film and television industry is now at the center of the state’s governor race as candidates push aggressive plans to stop a steep job decline that has hit Los Angeles especially hard. Over the past three years, about 51,000 jobs tied to production have disappeared across California. Most of those losses are in Los Angeles. The drop mirrors the collapse of the city’s aerospace workforce in the early 1990s, raising new concerns about long-term economic damage.
San Jose Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa are both calling for a major expansion of the state’s film tax credit program. Each wants to remove the current $750 million cap, though neither has provided a clear estimate of the cost.
Mahan said the state is losing ground fast as other regions offer richer incentives. He pointed to a 35 percent drop in production since 2022 and warned that California cannot afford to lose its core industry. He also proposed extending subsidies to cover salaries for actors, directors, and producers, a shift that would mark a major policy change.
Villaraigosa echoed that urgency and framed the election as a turning point for the industry. He argued that productions are leaving because other states and countries now cover both production crew costs and top talent salaries. California currently excludes those higher salaries from its incentive program.
Governor Gavin Newsom already expanded the tax credit during his second term, raising it from $330 million to $750 million and allowing studios to receive cash refunds even if they owe little in state taxes. The program also now includes animation and competition shows. Still, production has continued to fall.
Labor unions in Hollywood have pushed to keep the focus on below-the-line jobs, which include crew positions that make up much of the workforce. Studios and the Motion Picture Association have argued for broader coverage, saying California must match incentives offered by states like Georgia and New York.
Last year, lawmakers reached a compromise by increasing the credit rate to as much as 40 percent for below-the-line costs while keeping the cap and excluding top talent salaries. Even with that change, access remains limited. Only about 11 percent of television projects and 17 percent of films in Los Angeles received subsidies in late 2025, according to FilmLA.
Former U.S. Health Secretary Xavier Becerra has signaled support for the industry but has not taken a firm position on lifting the cap. His adviser said the state must balance support for production with broader budget concerns.
Former Representative Katie Porter has taken a more cautious approach. She said she wants to evaluate how the expanded program performs before backing any increase. She also raised concerns about how much of the credit should be refundable, emphasizing the need for fiscal responsibility.
Mahan’s plan goes further than most. He is proposing an uncapped 40 percent credit that applies to both crew and top talent costs. He argues the incentives would generate new economic activity rather than drain taxpayer funds. He also floated additional subsidies for concerts, touring productions, and major sporting events.
Billionaire investor Tom Steyer has also entered the conversation, calling for expanded tax credits while warning that losing the industry could be irreversible. He criticized recent media consolidation, including the merger involving Paramount and Skydance and leadership decisions at Warner Bros. He pointed to executive payouts as out of step with widespread job losses.
Despite declines in California, the state still leads the nation in production jobs, with about twice as many as New York and far more than Georgia. Still, those states have also seen declines since 2022, with Georgia losing major projects to the United Kingdom.
The primary election is set for June 2, with the top two candidates moving to a runoff in November. Republican candidates Chad Bianco and Steve Hilton have not outlined detailed plans, though Hilton has met with industry groups pushing for expanded incentives.
As global competition intensifies, the fight over Hollywood subsidies is shaping up as a key test of how far California is willing to go to keep one of its most iconic industries from slipping away.
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English (US) · 