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Now that Paramount is staying put in Los Angeles and state and federal lawmakers are pushing for expanded film tax credits, Hollywood insiders are seeing a glimmer of hope.
On Wednesday, California Gov. Gavin Newsom highlighted the state’s latest efforts to bolster its entertainment industry, including a new post-production tax credit, an expanded film and television tax credit and new protections for performers against the use of AI-generated content.
“California is the home of entertainment, full stop,” Newsom said in a statement. “We’re not just protecting that legacy; we’re investing in its future by expanding our film and television tax credit, launching a new post-production credit and standing up for performers in the age of AI.
“We’re making sure independent filmmakers and the next generation of storytellers and creators have a real shot to build, hire and produce right here in California,” he added. “More productions, more good jobs, more California stories told by California workers.”
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California Gov. Gavin Newsom speaks to the media after a news conference in Burbank July 2, 2025. (Hans Gutknecht/MediaNews Group/Los Angeles Daily News via Getty Images)
At the federal level, a bipartisan coalition of lawmakers is working on a tax credit for film and television productions. The bill is expected to be introduced in Congress in early November, with its backers aiming to secure passage by Dec. 11, before the current Congress concludes its work. If passed, the credit would take effect in 2027 and could be used alongside state production incentives.
Championed by President Donald Trump, the legislation has also received support from one of his most formidable political opponents, Sen. Adam Schiff, D-Calif. Schiff led the first impeachment effort against Trump and has remained a vocal critic of his leadership.
“I am in strong agreement with the President,” Schiff said on X. “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.”
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President Donald Trump has found an unlikely ally in Sen. Adam Schiff, D-Calif., in his push for incentives to bring back the film industry to Hollywood. ()
Filmmaker Paul Kampf, a 30-year veteran of the entertainment industry, described California’s incentives as “a really good start.”
“No matter where you make your film, whether it’s Georgia, Delaware, Puerto Rico or Europe, if you can do your post-production in California, you’re keeping jobs here, especially in independent films,” Kampf told Digital.
“We should be incentivizing filmmakers in America to stay in America. And we should also incentivize filmmakers who are outside of America to do their post here.”
Kampf, who has produced four feature films and a documentary in Serbia before embarking on his sixth project there, titled “Harvest,” has also found himself embroiled in a situation in which a company owned by the Serbian government released the film in Eastern Europe without his permission.
“This film is an example of what happens if we don’t protect Americans and entice Americans to film here,” Kampf said.
In California, 35 films, including 28 independent projects, have received production incentives for filming in the state. The sequel to Lionsgate’s blockbuster 2026 hit “Michael” is among the projects, along with a new Pixar film.
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The Hollywood sign in the Hollywood Hills Sept. 30, 2025, in Los Angeles. (Photothek via Getty Images)
All told, the projects are expected to generate more than $1 billion in direct production spending, according to the California Film Commission.
“Through our tax credit program, we’re helping bring these stories to the screen while keeping the jobs, investment and production that bring them to life right here in California,” Colleen Bell, director of the California Film Commission, said Wednesday in a statement.
Kampf, who has made films in several countries, told Digital California had long been arrogant about its position in the industry, assuming it held a monopoly on filmmaking.
“I’ve made movies all over the world. I don’t make movies in LA. I live here. I lived the taxes of LA and California, and I live the sort of challenges of lifestyle here,” he said.
“I think Hollywood needs a facelift, and it’s no pun intended. It needs to be seen as a place that is invigorating and investing in filmmaking again.
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“Realistically, what I can say is the tax incentives in America are really maybe the best bipartisan entertainment bill that I’ve seen in the last 10 years.”
