News Summary

Jonathan Nolan leads a campaign for $750 million in tax rebates to revitalize California’s film and television industry, which has seen a 30% decline in production. Amid labor strikes and competition from other states, this initiative aims to secure jobs and stimulate the local economy. Governor Newsom’s proposed $7.5 billion federal tax credit and Assembly Bill 231 are also part of broader efforts to encourage production and support previously incarcerated individuals in the workforce.

California – Jonathan Nolan, a prominent writer and producer, is leading a significant initiative to secure $750 million in tax rebates aimed at revitalizing film and television production in California. This effort comes at a critical time as the industry has faced a considerable decline, particularly exacerbated by the COVID-19 pandemic and ongoing labor strikes that have prompted many productions to move to states with more favorable tax incentives.

Recently, Nolan hosted seven California state lawmakers at the set of his Amazon Studios series “Fallout,” which currently employs between 600 to 800 local workers on a daily basis. This visit aimed to highlight the essential role that local employment plays in the state’s economy, as well as the need for lawmakers to gain a deeper understanding of the complete production process.

Production in California saw approximately a 30% decline in the first quarter of 2025 compared to the previous year, while other states like Georgia and New York have begun to attract filming jobs away from California. This trend has raised concerns among industry insiders and policymakers alike, leading to discussions about enhancing existing tax incentives to prevent further erosion of the local industry.

Efforts to bolster California’s film production include Governor Gavin Newsom’s proposal for a $7.5 billion federal tax credit aimed at stimulating jobs and production within the United States. This proposal emerges as part of a broader strategy to counteract the challenges imposed by tariffs on foreign films and the economic situation that has impacted the industry.

In addition, Assembly Bill 231 has been introduced to provide tax credits to small businesses that hire individuals who were previously incarcerated. This bill, which has garnered unanimous support from the Assembly Revenue and Taxation Committee, proposes a 40% tax credit on wages for hiring formerly incarcerated individuals. The intention behind the bill is twofold: to reduce recidivism rates and to aid in the reintegration of these individuals into the workforce.

California has experienced a significant loss of production jobs in recent years due to the diminishing incentives for film and television production. The production activities that remain in the state generate substantial economic activity, with research indicating that for every dollar allocated to the Film Commission, there is a return of $24.40 in economic benefit. Despite these promising figures, the ongoing exodus of productions poses a critical threat to job security and the economic ecosystem surrounding the entertainment industry.

Furthermore, Los Angeles Mayor Karen Bass has taken action by establishing an Entertainment Industry Cabinet to combat what is being referred to as “production leakage,” a term that describes the shift of film and television projects away from California to other, more competitively attractive locations.

Research also supports the notion that employment opportunities for formerly incarcerated individuals significantly contribute to a decrease in recidivism rates. Assemblymember Tri Ta has voiced support for this initiative, underlining the connection between stable employment and reduced re-offense rates, which emphasizes the importance of integrating job creation strategies within the broader framework of economic development.

To better compete with other states and retain more filming within California, enhancements to the California Film & Television Tax Credit Program have been proposed. Suggestions include increasing the annual budget for the program to $750 million and making adjustments to tax credits that could encompass half-hour comedies and alter conditions related to above-the-line costs.

Despite these initiatives, critics have raised questions about the effectiveness of film tax credits as a mechanism for stimulating the economy, suggesting that the economic benefits do not always justify the associated costs. As these discussions continue, the push for legislative changes and increased tax incentives remains central to restoring California’s once thriving film and television production landscape.