California State Senator Ben Allen Says Hollywood Coming Back Due to Tax Credits

California State Senator Ben Allen says Hollywood is showing signs of life again ... and he thinks Governor Gavin Newsom has a delicate act to balance.

Ben joined us on "TMZ Live" Monday, and we asked him about what a lot of folks in the film and TV industry in Los Angeles are feeling ... that Hollywood is dead because of overregulation, and other places are luring productions away from California with tax credits and incentives.

The Democrat -- who represents Santa Monica, Malibu, Pacific Palisades, Torrance and other cities in L.A. County -- says the concerns are valid ... but he says a new bill he passed to increase the state's film and TV tax credit program from $350 million to $750 million is already paying off.

Ben says since the bill, which he co-authored, was signed in June, more than 70 film and TV productions have gotten the green light.

Harvey Levin pushes back and wonders if this may be too little too late ... but Ben says it's an example of the slow and steady progress he claims California is making on a number of fronts.

We also asked him about Newsom, who definitely has an eye on the White House ... and Ben tells us how Newsom can balance his leadership on a local and national level.