Newsom looks to team up with Trump on federal film tax credit – Washington Examiner
California Governor Gavin Newsom is seeking to collaborate with the Trump administration to establish a $7.5 billion federal tax credit aimed at supporting the film and entertainment industry. This initiative follows Trump’s recent declaration of a 100% tariff on films produced overseas, which he labeled a national security threat. If successful, this tax credit could represent the largest federal investment in the U.S. entertainment sector to date. Newsom emphasizes that California remains a leading hub for film production and aims to enhance domestic filmmaking through this partnership. He previously proposed doubling the state’s Film and television Tax Credit Programme, allocating $750 million annually to attract filmmakers. The specifics of the proposed federal tax incentive are still unclear, and discussions are ongoing within the Trump administration about potential film industry tariffs.
Newsom looks to team up with Trump on federal film tax credit
Gov. Gavin Newsom (D-CA) said he is looking to work with the Trump administration to secure a $7.5 billion tax credit to aid the film and entertainment industry.
The governor’s request comes after Trump said he would be implementing a 100% tariff on movies “produced in Foreign Lands.” If Newsom is successful, it would be the largest federal investment in the entertainment industry in U.S. history.
“America continues to be a film powerhouse, and California is all in to bring more production here,” Newsom said in a statement Monday. “Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again.”
Last year, Newsom proposed doubling the state’s Film & Television Tax Credit Program, freeing up $750 million per year to entice moviemakers to work in the state.
State lawmakers in February proposed an expansion of the state’s Hollywood tax credit. The state-level proposal follows the 2023 SAG-AFTRA strike, in which thousands of industry workers went on strike for months. An estimated $5 billion was lost nationwide due to the strike, but writers and actors may have been in a worse economic position without it, according to a study from the University of Michigan.
The exact details of what the federal tax credit would entail remain unknown. Sen Adam Schiff (D-CA) said he was working on a federal film incentive proposal.
On Sunday, Trump called movies being made overseas “a National Security threat” and said that a 100% tariff will be levied on “any and all Movies coming into our Country that are produced in Foreign Lands.”
It is unclear how the Trump administration plans to place a duty on intellectual property. White House spokesman Kush Desai clarified Monday that “no final decisions on foreign film tariffs have been made,” adding that “the administration is exploring all options to deliver on President Trump’s directive.”
NEWSOM PROPOSES $750 MILLION HOLLYWOOD TAX CREDIT INCREASE
Trump additionally told reporters Monday that he was planning to meet with representatives in the film industry.
“I’m not looking to hurt the industry. I want to help the industry,” he said.
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