Newsom hopes to work with Trump for $7.5B Hollywood tax credit

With the catastrophic impact of Hollywood’s call for 100% tariffs on non-U.S.-made movies, California Gov. Gavin Newsom took action Monday night to propose a $7.5 billion federal federal film tax credit program with the White House to provide relief to the entertainment industry.

Newsom's proposal will allow the federal government to step in to promote film and television production in the U.S. through a modeling tax credit for California's own proposed $750 million state-level program. California lawmakers are currently aiming to increase the cap on their production tax credit program from $330 million per year to $750 million, significantly increasing credit to 35% while expanding product categories that qualify for shorter TV shows, animation titles and certain types of tag-free projects.

A potential federal tax credit program, ten times the California initiative, will be the first subsidy for the entertainment industry and provide a more uniform U.S. response to attractive subsidies provided by countries like Canada and the UK, which have prompted Hollywood’s lucrative production in recent years.

Newsom in a statement to Hollywood Reporter. “Building on our successful state program, we are eager to work with the Trump administration to further strengthen domestic production and make the United States film again.”

It is unclear how the proposed $7.5 billion federal tax credit will work, as no details have been shared, but given their personal history, Newsom said he will work with Trump as a major first step forward. Trump's relationship with Newsom is aggressive, with the two repeatedly clashing since becoming California governor in 2019, including hot ass issues such as immigration, Covid-19-19 responses and the climate crisis. Trump also gave Newsom a personal jab as he dealt with homeless people and wildfires in California. Similarly, Newsome has made efforts to Trump, recently blasting the president for spreading misinformation about wildfires.

Newsom's tax credit is because the global film industry is still trying to deal with Trump's call for “100% tariff” in any movies that the country has not made. The president posted on his Truth Social Platform on Sunday that his authorization for the Commerce Department and the U.S. Trade Representative to impose tariffs.

“The film industry in the United States is dying rapidly,” Trump wrote. “Other countries are offering various incentives to keep our film producers and studios away from the United States. Many other areas within Hollywood and many other areas within the United States have been devastating. It's the unanimous effort of other countries, so it's a national security threat. It's everything else, among other things, messaging and publicity!

“So I'm authorizing the Department of Commerce and the U.S. Trade Representative to immediately start the process of imposing 100% tariffs on all movies made abroad. We hope to make movies in the U.S. again!”

Trump was asked about tariffs while speaking with C-Span on Sunday, where he briefly elaborated on his post and blamed some of the blame on other countries.

“What they do is that other countries have been stealing movies, action abilities from the United States,” he said, adding, “I did some very strong research over the past week, and now we are making very few movies. Now, Hollywood is destroyed. Now, Hollywood, you guys have a very powerless governor, so not only will I have any effort, but I am willing to work on other things, if they are willing to work on other things, then if they are willing to work on other things, then if they are willing to work on them, then if they are not working on them, then if they are not working on them, then if they are not working on them, then we are not working on them, if they are not working on them, then we are not working on them, if you are not working on them, then we are not working on them, if you are not working on them, then we are not working on them, then we are not working on them, if you are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are not working on them, then we are supposed to be tariffs on the movies, at the time, we should be tariffs on the tariffs on the movies.

When asked for comments, a spokesperson for the Newsom office said late Sunday: “It looks like a dispersed day in Washington, D.C. again,” a spokesperson for the Newsom office said late Sunday.

The lack of details on Trump's film tariff plan has exacerbated confusion and fear across the industry. “While no final decision on foreign film tariffs has been made, the administration is exploring all options to achieve President Trump's directives to protect our country's national and economic security while making Hollywood great again,” White House spokesman Kush Desai told The New York Times. thr on Monday.