The extension through Senate Bill 485, authored by Sen. Anthony Portantino, D-La Cañada Flintridge, would provide $1.65 billion in tax credits, or $330 million per year.
Newsom's endorsement serves as a nudge to production companies that have recently left for other states with bigger tax incentive programs. But with top production companies such as Netflix, Disney, Warner Bros. Discovery, NBC Universal and Apple facing pressure to protect pregnant employees in states where abortion is illegal, Newsom is hoping to lure business back.
"As other states roll back people's rights, California will continue to protect fundamental freedoms for all and welcome businesses that stand up for their employees," Newsom said in a statement. "Extending this program will help ensure California's world-renowned entertainment industry continues to drive economic growth with good jobs and a diverse, inclusive workforce."
In a tweet, Newsom made a direct plea to companies: "Time to come back to the entertainment capital of the world. Where we believe in freedom. A woman's right to make her own decisions. And support our LGBT community."
Los Angeles Mayor Eric Garcetti praised the tax credit program Wednesday, tweeting that he "fought hard" for it because "Angelenos are the heart of the entertainment industry and deserve the opportunity to find good jobs right here at home."
"In L.A., the entertainment industry is more than glitz and glamour; it's a bedrock of our middle class," Garcetti said.
The program has created over 110,000 jobs, generating $24 in economic activity for every dollar invested, according to a March study by the California Film Commission.
SB 485, introduced last year, passed the state Senate in January and was set to appear before the Assembly Appropriations Committee on Wednesday.
"California is the entertainment capital of the world and it is exciting and appropriate for the state to invest in keeping and expanding its impact," Portantino said in a statement.