Newsom asks Trump to work with him on a tax credit of 7.5 billion US dollars for Hollywood

One day after President Trump Hollywood amazed by demanding steep tariffs in films “produced in foreign countries”, Governor Gavino Newsom from California said on Monday that he wanted to work with the Trump administration to create a federal film control loan of 7.5 billion US dollar to support the entertainment industry.

If it were approved, the proposal would be by far the largest subsidy program for the individual government for the industry in the USA and the first of its kind at the federal level. More than three dozen states already give incentives to lure and keep film and television production, but there is no national program, as is the case in some countries in overseas. And there is no single state program that spends more than 1 billion US dollars a year. California currently distributes 330 million US dollars annually.

“America is still a film -powered work, and California is everything to bring more production here,” said New Newsom, a democrat, in an explanation late Monday evening. “Building on our successful state program, we strive to work with the Trump administration in order to further strengthen domestic production and to film America again.”

Mr. Newsom's proposal came in response to the President's social media post on Sunday, which required a 100 percent tariff for films that were produced outside the USA. At the weekend, Mr. Trump met in his Mar-A-Lago Club in Florida with the actor Jon Voight, whom he named a “special ambassador” in Hollywood. After this meeting, he published his contribution and explained: “We want films in America again!”

The president's letter caused confusion in Hollywood, which has lost a lot of local film and television production for states and nations that offer rich tax credits and cheaper workers. While only a few said in the industry that they understood Mr. Trump's proposal, some feared that the tariffs would cause more damage than benefits and instead for Federal Aid in the form of tax credits.

A tax credit that was modeled on the California incentive program is essentially what Mr. Newsom suggests, even though the exact mechanics, how it would work or be enacted would have remained uncertain. On Monday, Senator Adam Schiff, Democrat of California, said his office was working on a federal filthy.