In an effort to keep productions from fleeing to more generous tax havens, California has awarded tax credits to a record-breaking 51 film projects—the largest single-round allocation in the state’s history. With Hollywood still recovering from last year’s strikes and facing stiff competition from states like Georgia and international hubs like the U.K., this latest round of incentives underscores California’s push to retain its title as the entertainment capital of the world.

The California Film Commission estimates these projects will generate $578 million in economic activity and provide 6,490 jobs for cast and crew, with nearly $347 million in wages paid to below-the-line workers. While big studios like NBCUniversal, Twentieth Century Studios, and Warner Bros. made the cut—securing tax credits for high-profile productions like Business Women and Cut Off—the bulk of this year’s awards went to independent films.

The State’s Incentive Gamble

California Governor Gavin Newsom remains bullish on keeping production within state lines, calling these tax credits “vital to keeping production where it belongs.” But the reality is that Hollywood’s biggest productions continue to seek out states and countries with more aggressive financial incentives. The latest allocation reflects this shift—46 of the 51 approved projects are independent films, many of which will shoot outside of Los Angeles in Contra Costa, Oakland, Ojai, Merced, and San Diego Counties.

Among the indie films approved for tax credits are Animals, Not Her, TBTN, Phantom, A Bobby Thing, and Reenactment. Meanwhile, one of the biggest recipients this round is the new untitled project from Everything Everywhere All At Once directors Daniel Kwan and Daniel Scheinert, securing a $20.8 million tax credit.

“We are L.A. filmmakers, with very dear L.A. friends, who happen to be some of the greatest creative talents we’ve worked with,” Kwan and Scheinert said in a statement. “On Everything Everywhere All At Once, we received the California tax credit, and had we not, it would have been utterly impossible to make that film.”

A Race to Keep Production in California

Despite California’s tax incentives, major studios continue shifting high-budget productions to Georgia, the U.K., Canada, and Australia, where governments offer uncapped rebates, cash grants, and deeper tax savings. Newsom’s administration has proposed an aggressive expansion—doubling California’s annual film and TV tax credit cap from $330 million to $750 million—but details are still being finalized.

Colleen Bell, executive director of the California Film Commission, emphasized that recent disruptions like the L.A. wildfires and last year’s dual strikes have made it even more critical to keep production in the state.

“These disruptions have impacted employment for thousands of cast and crew members, affecting everything from production schedules and financing to housing and location access,” Bell said. “Now more than ever, this program is a critical tool to help productions recover, keeping jobs and investment here in our state, all while ensuring that California remains the heart of the entertainment industry.”

With production volumes still well below pre-pandemic levels, California’s ability to retain film and TV shoots is under more pressure than ever. The latest round of tax incentives is a signal that the state is willing to fight for its film industry, but whether it will be enough to keep Hollywood from looking elsewhere remains to be seen.

See the list of other productions that were selected to receive tax credits here.