Over 30 California legislators are urging Governor Gavin Newsom to exempt the state's film and TV production incentive program from a newly imposed cap on corporate tax credits.

The letter, addressed to Newsom and key legislative leaders, warns that without exemption, the program will be 'significantly kneecapped,' jeopardizing thousands of middle-class jobs in the entertainment industry.

The budget law limits annual tax credits to $5 million or 50% of a company's state tax liability, which could undermine the $750 million annual cap established last year.

Industry representatives argue the change will reverse progress made in attracting production back to California after pandemic-related shutdowns, strikes, and industry exodus.Assemblyman Rick Chavez Zbur, who co-authored the 2025 bill expanding eligibility, called the cap a 'complete decimation' for the sector.The film commission projects $6.

6 billion in direct spending and over 34,000 jobs from the incentive program, highlighting its economic importance despite challenges from pandemic disruptions and labor strikes.