Gov. Gavin Newsom is expected to sign a bill to increase tax incentives for the film and television industry that passed the state legislature on Thursday.
The $330-million package includes a $180 million increase to the current incentive program to keep productions in California and $150 million for a new tax credit to boost the construction of new soundstages.
Democratic state Assemblyman Jesse Gabriel of the west San Fernando Valley said the tax incentives will not only benefit the entertainment industry.
"This is not about celebrities. This is about people who work for dry cleaners, people who work for caterers," said Gabriel. The bill is for "the heart and soul of our creative economy and our entertainment industry here in LA," he added.
"This is a bill that will have broad benefits for working families."
Robbie Hunter, president of the State Building and Construction Trades Council, emphasized that keeping film and television projects in-state needs to be a priority.
"The continuation of the entertainment industry, one of our core industries, is key to California's economic success," said Hunter in a statement.
"The soundstage construction tax credit, led by Senator Portantino, will allow California to remain competitive with other states that are looking to carve up Hollywood as yet another raid on the California economy."
If Newsom signs the bill, California would be "on par with — if not slightly ahead of" New York state's tax incentives, according to Deadline.
"As someone who came to California after college to work in entertainment, this effort brought a smile to my face," said bill author Sen. Anthony Portantino in a statement. Portantino represents the cities of Burbank, Glendale and Pasadena.
Portantino estimated the bill will bring thousands of jobs to the state and "billions of dollars of economic benefit for California."
Production companies are required to meet diversity targets for a workforce that reflect California's population in terms of race and gender to receive the credit.
The full bill is available here.