The day before his successor as California’s governor is elected in the high stakes midterms, Gavin Newsom is going out with a bang. A more than billion dollar film and television bang,to be precise.

In what would be termed a seismic November surprise in any other normal election year, potential POTUS contender Newsom is proposing hiking the Golden State’s $750 million tax incentive film and TV program to more than $1 billion.

Newsom’s big move would make California’s heavily subscribed big and small screen tax credits the largest capped program in the United States. While Georgia’s media tax incentive has long been uncapped, hiking California’s investment (which is what the California Film Commission-run tax credits program has lucratively proved to be) to $1 billion could leave New York (and its bulging production) in the bicoastal dust.

“At least $1 billion in tax credits means more investment flowing into our economy and more opportunity across the industry,” the term-limited Newsom said Monday morning. “Through this expansion, we will maintain the momentum and success of our historic expansion last year. But states can’t shoulder the cost alone, which is why I am calling on Congress to back up an expanded tax credit by passing national film and TV tax credit legislation already on the table.”The much hyped bipartisan federal plan, backed by strange bedfellows of Donald Trump, Newsom, Sen. Adam Schiff (D-CA), the Hollywood guilds, studios, streamers and MAGA loyalists, remains on the procedural back burner until at least after tomorrow’s midterms and the aftermath.

Still, within Newsom’s announcement today lies some pretty shiny baubles for an ailing West Coast industry that has seen production crater and over 50,000 jobs directly lost over the past six years.

Backed by influential state Assemblymember Rick Chavez Zbur, who literally reps Hollywood, the latest plan from Newsom has some long and much desired changes to the way money is handed out to productions in California. If enacted just under a year and a half after CA’s tax credits were raised from $330 million annually to $750 million, Newsom’s revamped billion dollar baby also promises to: Expand the tax credit eligibility to above-the-line expenditures and make above the line compensation a qualified expenditure to ensure the creative industry’s leading talent stay here in this state, subject to appropriate funding caps.

Extend the tax credit sunset from five to 10 years to provide more predictability and support long-term production investment.

Introduce an incentive for companies that commit to at least two distinct qualifying productions in California by providing a 5% boost in tax credits.

Increase independent film funding to $100 million annually, up $26 million from the current program, to strengthen California’s independent film sector and support a broader range of productions and creative talent.

Now, coming back to reality, it’s extremely unlikely that lame-duck Newsom would be able to get the increase through the legislature in Sacramento before he leaves office in January 2027.

However, with poll-leading former California attorney general and U.S. health secretary Xavier Becerra poised to replace his old boss as governor, Newsom’s big bucks bet has a pretty good shot at becoming law and cementing his Hollywood legacy.

During the about-to-conclude campaign, both Becerra and GOP gubernatorial rival Steve Hilton, as well to a lesser extent L.A. mayoral candidates Nithya Raman and Karen Bass, have laid out proposals of their own to juice up the state’s film and TV tax credits program. Also, a $10 million, post-production tax credit was signed into law by Newsom in September. Echoing Becerra’s previously released blueprint, it is worth noting that Newsom’s plan today insists on capping the incentives — which is clearly intended on helping Hollywood, but also not busting the state’s current theoretically balanced budget of $352 billion.

Still, not a bad move for the home of Hollywood, that needs a jolt to get back in the ring. Not a bad move at all for an always-camera-ready CA pol like Gavin Newsom with DC ambitions and donor coffers to fill.

BTW – Successful recipients of the next round of CA’s film and TV tax credits should know before Thanksgiving if they and their productions made the big bucks cut. With an anticipated $1.08 billion spend in the state, the latest big screen round was made public on October 7. The sequel to Michael, Lionsgate’s blockbuster Michael Jackson biopic, as well as New Line’s Friday sequel Last Friday and a new project from indie filmmaker Mike Mills, were all in the winner’s circle, so to speak.