Steve Hilton Unveils Bold Plan to Revive California’s Film Industry with Unprecedented Tax Incentives

Republican gubernatorial candidate Steve Hilton, endorsed by former President Donald Trump, has unveiled a comprehensive plan to revitalize California’s film and television production industry. On Thursday, Hilton announced his proposal to introduce ambitious federal tax incentives and uncapped state credits, positioning California as a global leader in production once again.

Hilton, a British-American political commentator and former Fox News host, pledged to work directly with the Trump administration to establish a nationwide film tax incentive program. Such a program does not currently exist in the United States. The closest existing model is the Bush-era Section 181 tax incentive, which allows productions to deduct up to $15 million in domestic shoot expenses from their taxable income. However, Hilton’s plan aims to create a more competitive, nationwide credit that would rival incentives offered by Canada, Australia, and the United Kingdom.

Under Hilton’s proposal, productions could qualify for a film tax credit ranging from 40% to 60%, depending on the project. This would significantly exceed California’s current credit, which caps at 45% with a base rate of 35%. Notably, Hilton’s plan would apply to both above-the-line and below-the-line expenses, including post-production costs—a departure from current models that typically exclude high salaries for top talent. This approach aligns with his goal of supporting middle-class workers in the industry.

Competitive Edge: Uncapped Incentives and Mid-Budget Focus

Like many of his opponents in the race for California governor, Hilton supports an uncapped, open production incentive model. His Democratic rivals, Matt Mahan and Tom Steyer, also back removing the cap, though Mahan’s proposal includes extending credits to above-the-line expenses, a move criticized by unions for potentially benefiting high-earning talent rather than local crews.

Hilton’s plan also reserves a portion of the annual program for independent and mid-budget film productions, emphasizing his commitment to protecting the broader production economy. “

These programs were originally designed to protect the people behind the scenes and the broad production economy that supports them. The goal was to keep working crews employed and keep production happening in California, not simply to subsidize the largest projects that can already move anywhere.

California’s Expanding Film Incentive Program

California has already taken steps to bolster its film industry. In 2025, the state significantly expanded its program, increasing the annual cap from $330 million to $750 million and broadening eligibility to include streaming series, animation, and sitcoms. Since then, the California Film Commission has approved 147 film and television projects, marking a 53% year-over-year increase. Despite this growth, Hilton argues that California’s incentives still lag behind global competitors.

Data from 2025 reveals a troubling trend: shoot days in Los Angeles County fell 16% from 2024 to below 20,000, while shoot days across all major film and television categories were at least 30% below the five-year average. This decline underscores the exodus of productions—and the local labor force—toward states and countries offering more competitive incentives.

Hilton’s proposal seeks to reverse this trend by making California the most attractive destination for film and television production in the world. While the plan could impose significant costs on California residents, Hilton claims he has the fiscal flexibility to implement it, citing plans to offset spending through other budget cuts.