California Governor’s Race: Who Will Revive Hollywood’s Film Production Boom?

California’s Gubernatorial Race: A Make-or-Break Moment for Hollywood

The California gubernatorial election is heating up as eight leading candidates compete to succeed Gov. Gavin Newsom. At the heart of the race is a critical issue for the entertainment industry: reversing the exodus of film and television productions from the Golden State.

During TheWrap’s interviews with gubernatorial candidates at the CBS California Governor’s Debate last week, their strategies for revitalizing California’s film industry emerged. Proposals range from uncapped state tax credits to collaborating with Donald Trump to secure federal tax incentives. Several candidates have already outlined their plans publicly, and TheWrap has compiled a comprehensive overview of each major candidate’s stance on supporting the entertainment community.

Hollywood’s Decline: The Numbers Don’t Lie

Despite Gov. Newsom’s efforts—particularly during his second term, when he more than doubled the state’s film tax incentive from $330 million to $750 million—productions continue to leave California in record numbers. The data paints a stark picture:

• 2025 shoot days in Los Angeles County dropped 16% compared to 2024, falling below 20,000.
• Shoot days across all major film and television categories were at least 30% below the five-year average.
• This decline reflects the broader trend of studios seeking tax credits in other states.

There are, however, signs of a potential rebound. In 2025, the California Film Commission expanded its program, increasing the annual cap and broadening eligibility to include more streaming series, animation, and sitcoms. This led to a 53% year-over-year increase in approved projects, totaling 147 film and television productions.

FilmLA reported 5,121 days of on-location shooting in the first quarter of 2026—a 10.7% improvement from the 4,625 shoot days recorded in the last quarter of 2025. However, this figure remains 3.3% lower than the 5,295 days recorded in the same quarter of the prior year.

Candidates’ Plans to Revitalize California’s Film Industry

Several gubernatorial candidates have proposed ambitious plans to bring productions back to California:

Tom Steyer: A 10-Point Strategy for Hollywood

Tom Steyer, a billionaire businessman, environmentalist, and progressive activist, unveiled a 10-point plan earlier this month to strengthen California’s film and entertainment industry. As a hedge fund founder, Steyer has proposed expanding the state’s film tax credit program to make it uncapped for producers.

Steve Hilton and Matt Mahan: Uncapped Tax Credits with Broader Eligibility

Steve Hilton, former Fox News host, and Matt Mahan, San Jose mayor, also advocate for an uncapped tax credit program. Their proposals include expanding eligibility to cover both above and below-the-line expenditures.

This approach contrasts with the stance of labor unions, which have pushed to keep the program focused on below-the-line costs—expenses tied to crew and production jobs. Unions argue that this targeted approach ensures incentive dollars directly benefit local workers. However, studios, represented by the Motion Picture Association, have lobbied for the inclusion of above-the-line costs (e.g., salaries for lead actors and directors), citing the need to compete with states like Georgia and New York.

Donald Trump: A Potential Wildcard in Federal Negotiations

Some candidates have floated the idea of working with former President Donald Trump to secure federal tax credits for California productions. This strategy could provide an additional financial boost to lure studios back to the state.

Key Dates and Next Steps

The primary election is scheduled for June 2, 2026. The top two finishers will advance to a November runoff, where the fate of California’s film industry—and the broader entertainment sector—will be decided.

Tom Steyer addressed the California Democratic Party convention at Moscone Center in San Francisco on Saturday, February 21, 2026, outlining his vision for the state’s entertainment future.

Why This Race Matters for Hollywood

The outcome of this election could determine whether California retains its status as the global hub for film and television production—or cedes ground to competing states offering more generous incentives. With productions and jobs fleeing, the next governor’s policies on tax credits, labor protections, and federal collaboration will shape the future of Hollywood.