California's Latest Tax Credit Round Goes 80% Independent
Summary
Twenty of the independent awardees are budgeted under $10 million, and starting in 2027 some independent productions will be exempt from the state's temporary credit limit.
"Twenty-eight of the 35 films awarded in California's latest Film & Television Tax Credit round are independent productions, Governor Gavin Newsom's office announced. Eight of the independent features have budgets above $10 million and 20 are budgeted below $10 million. The full slate is projected to generate $1.08 billion in direct production spending in California, including $635 million in qualified spending and $423 million in qualified wages, along with 5,453 cast and crew jobs and 1,049 shooting days, 457 of them outside the Los Angeles zone.
Studio projects in the round include New Line's Last Friday, Lionsgate's Michael 2 (working title) and an untitled Paramount crime thriller, alongside independent titles such as an untitled Mike Mills film, Pure from The Space Program, American Wolf and Leaves of Glass. ""We're thankful for the opportunity to stay local,"" said Ice Cube. Since the expanded program launched in July 2025, 179 projects have generated $7.2 billion in California production spending.
The state also pointed to recent changes: a new post-production tax credit for editors, visual effects artists and musicians, enhanced refundability for the existing credit and an exemption from the temporary credit limitation for some independent productions starting in 2027. The Motion Picture Association's The Credits reported that the post-production credit, signed September 19, covers 35% to 50% of qualified post expenses."