Gavin Newsom Signals He’s Willing to Work With Donald Trump on $7.5B Federal Tax Credit for U.S. Film Industry

Faced with the possible devastating impacts of Donald Trump’s proposal for 100% tariffs on foreign-made films, California Governor Gavin Newsom took swift action Monday night by suggesting collaboration with the White House on a $7.5 billion federal tax credit program aimed at assisting the entertainment industry.

Newsom’s plan involves the federal government increasing support for American film and television production, mirroring California’s $750 million state-level tax credit program as a model. This potential nationwide program, significantly larger than California’s, would mark a first in the entertainment industry. It would offer a more coordinated U.S. approach to counteract the appealing subsidies offered by countries like Canada and the U.K., which have been successful in attracting major Hollywood productions in recent times.

America remains a dominant force in cinema, and California is keen to attract more film productions,” Newsom stated to The Hollywood Reporter. “Leveraging our effective state initiative, we’re enthusiastic about collaborating with the Trump administration to bolster domestic filmmaking even further, aiming to revitalize America’s cinematic prowess.

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2025-05-06 07:54