From Hollywood Surges to Housing Shifts: States Step Up as Federal Policy Pulls Back

This week on The Tax Credit Talk, hosts Hallie James and Parker An explore the growing divide between aggressive state-level incentives and federal pullbacks, and what that means for film, housing, brownfield redevelopment, and renewable energy. From California’s blockbuster film credit expansion to new rules on housing bonds and sweeping federal retrenchments in clean energy, the latest policy shifts are reshaping investment across industries.

Whether you’re producing film, developing affordable housing, cleaning up contaminated sites, or financing renewable projects, this episode unpacks the opportunities—and the challenges—created by today’s evolving tax credit landscape.

What We Covered:

🎥 California Expands Film & Television Tax Credits
California doubled down on its Film and Television Tax Credit Program, increasing annual funding from $330 million to $750 million through 2030. The results have been immediate: applications surged nearly 400%, with 22 projects already approved, generating $1.1 billion in spending, 6,500 cast and crew jobs, and more than 46,000 background performer workdays. The program is attracting top-tier names like Dan Fogelman and Larry David while keeping hit series like NCIS Origins in-state.

🌱 Brownfields Redevelopment Gains Traction in Connecticut
Ansonia and Shelton are turning decades-old industrial blight into opportunity. Backed by $40 million in state and federal grants, remediation is underway at the 60-acre Ansonia Copper & Brass site. The first phase includes a 3.9 MW fuel cell project that delivers both revenue and energy. Inspired by Shelton’s earlier success, where $40 million in public funds drew $100 million in private investment, the project highlights how cleanup incentives can spark economic renewal.

🏘️ LIHTC Bond Test Drops to 25%
The One Big Beautiful Bill Act permanently lowered the private activity bond threshold for 4% LIHTCs from 50% to 25%. States are already adjusting: California now caps bond requests at 30% of project costs, adding incentives for developers to request less. Georgia and Wisconsin have issued similar guidance, signaling a nationwide trend. While this change expands bond capacity for affordable housing, it also forces developers to rethink financing strategies and project structures.

⚡ Federal Rollbacks Hit Renewable Energy
Federal actions are reshaping the clean energy landscape. The One Big Beautiful Bill Act ended solar and wind subsidies ahead of schedule, while the Treasury and Interior Departments added tougher cost and review requirements. The EPA canceled a $7 billion solar grant program, and recent moves halted projects like Equinor’s offshore wind farm and Idaho’s Lava Ridge wind project. The Commerce Department has launched investigations into turbine imports, while approvals for Rhode Island and Maryland offshore projects face revocation. Together, these shifts raise urgent questions about whether states and private markets can offset the federal retreat.

Key Takeaways:

• California’s expanded film credits are delivering billions in spending and thousands of jobs, reinforcing its industry dominance.
• Brownfield cleanups in Connecticut show how targeted incentives can transform neglected sites into engines of growth.
• The lowered LIHTC bond test expands housing capacity but demands new financing approaches from developers.
• Federal rollbacks on renewable energy create uncertainty, underscoring the widening gap between state ambition and national policy.

The common thread: while federal support contracts in some areas, states are stepping up with aggressive incentives that could redefine where capital and projects flow.

🎧 Listen to the full episode: https://open.spotify.com/episode/2aR9emvgH8pohwlMORQP7z?si=c0f8d66c6a534391
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About Fallbrook Financial Services
Fallbrook Financial Services has placed over $6 billion in state tax credits across housing, renewable energy, film, brownfields, and more. We’re one of the largest brokerages in the country—here to help you make your credits count.