00:00Today I'm going to tell you about one of Gavin Newsom's most embarrassing blunders.
00:05The California governor has managed to mess up the Hollywood tax credit.
00:10Last year, in 2025, Gavin Newsom signed a new Hollywood tax credit.
00:15It more than doubled the existing tax credit from $330 million to $750 million a year.
00:22And that's a big deal.
00:23The governor's office pointed out that it could create $6.6 billion in economic activity
00:29in the ailing entertainment industry.
00:31And Hollywood certainly needs the help.
00:33After all, jobs are declining, and there are all kinds of fears around competition from
00:38AI, and the Golden State is losing production to other states, even other countries, that
00:43are providing generous tax incentives.
00:45But in his new budget, Gavin Newsom accidentally took those tax credits away by passing a cap
00:52on corporate tax credits that amounts to $5 million or 70% of gross tax liability.
01:00That means the studios can't claim very much of the Hollywood tax credits at all.
01:05What he gave in 2025, $750 million, he essentially took away in 2026 with a cap of $5 million.
01:12It's essentially a useless tax credit.
01:15Now the legislators are also on the hook because they claim they thought they were voting for
01:20a budget that had a little carve-out for Hollywood that would preserve the tax credit.
01:23Turns out they didn't read the bill at all.
01:25And so now the legislators and the governor have to go back to Sacramento and they have
01:30to pass a new law carving out a special exemption for Hollywood from the tax cap on tax credits
01:37in California.
01:38It's all very embarrassing as Gavin Newsom is trying to build a profile for his presidential
01:43run in 2028.
01:44After all, if you can't take care of your state's most important industry, how can you
01:48take care of the country?
01:50This upcoming period of time is coming out of the country, to Baker Tower and the
01:50change your state, 왜�'r by Harley- �ne currently to consider her.
01:50Under the Noble of theеты you were
01:50We living in the middle of the country that DDT's will be kind-of, it's like
01:50We're supposed to happen, all right?
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