Becerra Secures California Governorship, Leaving Film Tax Credit Decision to New Term
The new governor faces an immediate decision on whether to adopt the former administration's plan to expand production incentives to $1 billion.
By Tunde Bailey ·
Xavier Becerra was declared the winner of the California governor's race on Tuesday, ending a contest against Republican Steve Hilton. Becerra, a Democrat, secured the top position after a June primary where he faced no viable opposition from the other party.
The central conflict of the election centered on energy costs and healthcare, with Becerra campaigning heavily on his history of opposing President Trump. During his time as attorney general, he filed more than 100 lawsuits against the president. This stance defined his campaign strategy and distinguished him from his rivals.
A key unresolved issue for the incoming administration is the state's film and television tax incentive. Governor Gavin Newsom announced a proposal on Monday to increase the credit from $750 million to $1 billion. The plan also extends the program's deadline to 2040 and includes above-the-line costs in the calculation.
Because Newsom leaves office in two months, the decision to adopt or modify this proposal falls to Becerra. Hollywood stakeholders are currently lobbying for an unlimited incentive that would act as an entitlement, bypassing the need for yearly discretionary approval by the state film commission.
An Assembly special committee held a hearing on the unlimited incentive concept last week. Committee chair Rick Chavez Zbur described the idea as a "heavy lift" following the session. Becerra has not formally committed to either the Newsom proposal or the unlimited model.
Becerra told Variety last month that he intends to sit down with legislators to review the proposals before him. He emphasized the economic importance of the industry to Southern California, noting that Hollywood and theme parks draw global tourism. His campaign website lists a film policy that was rated 100% AI-generated by Pangram, lacking explicit numerical commitments.
Becerra previously served in Congress and as the secretary of the Department of Health and Human Services under the Biden administration. He replaced Kamala Harris as state attorney general after she left the office. In the primary, he overcame a crowded field that included hedge fund billionaire Tom Steyer, who had support from IATSE and various progressive groups. Becerra became the frontrunner after Rep. Eric Swalwell withdrew amid misconduct allegations.
