California’s beefed-up film and TV tax credit program is already making waves. The California Film Commission reported a 400% surge in applications during its July window for television projects — the first since the state’s incentive nearly doubled from $330 million to $750 million annually in June.

The move comes as Sacramento seeks to counter an industry slowdown and reclaim market share from competing states offering rich incentives. The latest round of applications opened July 7-9 under new rules designed to make the Golden State more competitive — and more lucrative — for producers.

“It’s clear the recent expansion and program enhancements are drawing strong attention from across the industry,” a Film Commission spokesperson told THR.

More Generous, More Flexible

Under the revamped program, qualifying productions can now access credits worth 35%-40% of eligible in-state spending, a jump from the previous 20%-25%. The cap on qualified expenses has also been raised from $100 million to $120 million per project, meaning major studio features could claim as much as $48 million in credits — nearly double the prior limit.

Eligibility has broadened as well. The minimum runtime for non-relocating TV series has dropped from 40 minutes to 20 minutes per episode, opening the door for sitcoms and other half-hour shows. Animated series and large-scale competition shows will also be eligible starting in 2026.

The state has earmarked $412.5 million per year for television, $262.5 million for studio features, and $75 million for independent films, with allocations based on a “jobs ratio” metric that prioritizes projects generating the highest wages relative to their credit request. Officials project the expansion could boost annual job creation by 40-50%, translating to roughly 4,400–5,500 positions.

Refundability Levels the Playing Field

One of the most consequential changes — approved in 2023 — is that the tax credit is now refundable, allowing companies without California tax liability to receive a cash payout. Recipients can claim 90% of the credit’s face value, paid out over five years. The provision puts California in closer alignment with rival states that already allow credits to be sold, transferred, or refunded.

With TV producers showing up in force for July’s application round, the next test of the program’s drawing power comes Aug. 25-27, when the Film Commission opens its feature film window.