Gavin Newsom Asks Trump to Create $7.5 Billion Federal Tax Credit for Hollywood Instead of Tariffs

Gavin Newsom responded Donald Trump’s demand for steep tariffs on movies filmed outside the U.S. with a plea for the President to “partner” with him instead on a proposed $7.5 billion federal tax credit for Hollywood.

The proposed tax incentive would be separate from the California state tax credits Newsom is trying to enact, including the proposal announced in October expand the state’s Film & Television Tax Credit Program to $750 million annually. It is currently $330 million annually.

“America continues to be a film powerhouse, and California is all in to bring more production here. Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again,” Newsom said in a statement Monday night.

There is as of this writing no indication the Trump administration has any interest in Newsom’s proposal. But Trump insulted Newsom repeatedly during a press conference earlier Monday to discuss his proposed tariffs, blaming him personally for the decline of film and TV production in California.

Trump first called for the tariffs on Sunday, saying in a post on his Twitter clone Truth Social that he was authorizing the Department of Commerce and the United States Trade Representative to “immediately begin the process of instituting a 100% tariff on any and all movies coming into our country that are produced in foreign lands.”

Trump also described tax incentives and other tactics used by foreign countries to attract movie productions as “a national security threat. It is, in addition to everything else, messaging and propaganda.”

The post Gavin Newsom Asks Trump to Create $7.5 Billion Federal Tax Credit for Hollywood Instead of Tariffs appeared first on TheWrap.