California Governor Proposes $7.5 Billion Film Tax Credit Amidst Tariff Fallout and Voight's Bold Proposal
California Governor Gavin Newsom is urging federal support for the film industry as Jon Voight proposes new tax incentives and tariffs on foreign productions.
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Overview
California Governor Gavin Newsom is advocating for a $7.5 billion federal tax credit to bolster U.S. film production, responding to President Trump's proposed 100% tariff on foreign films. Voight's recent proposals include a 10-20% federal tax credit for U.S.-based productions, stackable with existing state incentives. His plans also suggest severe tariffs on productions heading abroad when U.S. incentives are available. Both initiatives reflect an effort to revitalize the American film industry and create local jobs amid concerns over foreign competition, as the White House continues to deliberate on Trump's tariff announcement.
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President Trump proposed implementing a 100% tariff on foreign-produced films entering the U.S., citing national security concerns and foreign incentives drawing productions abroad[1][2].
Newsom's federal proposal ($7.5 billion) dwarfs California's current $330 million annual tax credit program, which he separately seeks to expand to $750 million annually at the state level[1][3][4].
While Newsom advocates for a massive federal tax credit program ($7.5B), Voight proposes smaller federal tax credits (10-20%) stackable with state incentives and targeted tariffs on productions leaving the U.S.[Story Context]
LA-area production dropped 5.6% in 2023 compared to 2022, with California ranking sixth globally in preferred filming locations behind Toronto, UK, Vancouver, Central Europe, and Australia[1][2].
Democrats worry tariffs could harm consumers and prefer federal tax incentives, with Senator Adam Schiff warning of 'unintended damaging impacts' and Assemblymember Rick Zbur noting Trump's past tariffs faced legal challenges[2].
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