Hollywood secures new contracts and tax credits to stabilize industry future
Hollywood’s labour unions have secured new contracts with major studios to prevent a health plan funding crisis. The agreements come three years after the writers and actors strikes disrupted the industry. Efforts to stabilise the sector continue with fresh political and financial measures. In 2025, California’s Film & TV Tax Credit Program underwent a major expansion. The annual funding more than doubled to $750 million. Over 100 productions, including Heat 2 and The Studio Season 2, have already benefited from the updated Program 4.0 credit.
George Cheeks of Paramount has pushed for further improvements to the state’s tax credit. He wants above-the-line costs to qualify for reimbursement. Meanwhile, MPA chief Charlie Rivkin confirmed that industry leaders are discussing a federal film tax incentive with the White House and Congress.
Sen. Adam Schiff and Rep. Laura Friedman are actively working on such an incentive to protect American film jobs. President Donald Trump has also appointed Jon Voight, Sylvester Stallone, and Mel Gibson as special ambassadors to boost domestic production.
The Writers Guild of America and SAG-AFTRA recently extended their contracts by an additional year. The Directors Guild of America is now expected to focus on healthcare in its next round of talks. Entertainment Union Coalition president Rebecca Rhine has stated that more work is needed to strengthen the industry’s health. The new contracts and expanded tax credits mark significant steps for Hollywood’s recovery. Federal discussions and high-profile appointments aim to sustain momentum. These measures seek to secure jobs and stabilise funding for the industry’s future.
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