Steve Hilton, a Trump-endorsed candidate for California governor, unveiled a proposal on Thursday for unlimited state subsidies to support film and TV production. He made the announcement outside the shuttered Cinerama Dome alongside lieutenant governor candidate Gloria Romero. Hilton described the situation as an emergency amid competition from other states.
Hilton, the leading Republican candidate in polls and a favorite for the November runoff, argued that the film industry has suffered from 'benign neglect' under 16 years of Democratic rule in California. 'This is an emergency,' he said. 'We are allowing it to die, because other states in America and other countries are aggressively competing for the work and the jobs that go with it.' He proposed eliminating the current $750 million cap on state incentives, currently offering 35%-40% rebates on below-the-line costs, and expanding them to include above-the-line salaries for actors, directors, writers, and producers. Hilton also wants a federal incentive layered on top to reach a combined 60% rebate and has met with the Motion Picture Association, Hollywood labor unions, and Jon Voight, Trump's special ambassador to Hollywood, whom he called a friend and early endorser. The president has endorsed him as well, Hilton noted, adding, 'We’re a team.'San Jose Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa have similarly called for removing the cap, without specifying costs. Hilton said the spending would depend on success and could lead to tax reductions, framing it as 'a version of a tax cut.' Georgia remains the only major hub with an uncapped 30% tax credit covering both above- and below-the-line costs, peaking at $1.3 billion in 2022 before declining.Democratic contender Tom Steyer proposes raising the cap but not eliminating it. A spokesperson for Steyer responded that he opposes the expected Warner Bros.-Paramount merger, which could cost thousands of jobs, and accused Hilton of supporting such deals pushed by MAGA billionaires. 'Tom’s the only candidate who will stand up to corporate monopolies and protect working people,' the spokesperson said.California's production workforce is about eight to 10 times larger than Georgia's, per Bureau of Labor Statistics data. Hilton emphasized making incentives high enough to urgently draw productions back to Hollywood.