California’s film and television industry is seeking an exemption from a new business tax-credit law, arguing it could undermine the state’s expanded incentives programme and deter productions from filming there. The dispute matters because California pledged an additional $420 million in 2025, bringing annual support towards $750 million, to help retain and rebuild a sector facing competition from other locations.

Budget bill SB 122 limits the annual use of business tax credits above $5 million and introduces a permanent cap from 2030 of 70 per cent of a taxpayer’s liability or $5 million, whichever is higher. Studios with large awards, including Paramount’s $37.7 million and Disney’s $45 million, may therefore need years to receive their full value; unions say about 350,000 messages urging legislative action have been sent to lawmakers.