A legislative proposal aimed at significantly increasing incentives offered to film and TV production companies to work within California has been approved by the California State Assembly. However, it’s important to note that the $750 million program limit mentioned by Governor Gavin Newsom was not explicitly included in this bill.
On Tuesday, lawmakers approved AB 1138 by a landslide margin of 73-1, sending it to the Senate for further consideration. Assemblymember Carl DeMaio from San Diego was the lone dissenter in this vote. The decision follows an earlier vote in the state Senate regarding a bill related to California’s entertainment tax credit program, which did not include the anticipated financial support from the governor as part of the revised bill.
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In a 73-1 vote on Tuesday, AB 1138 was passed by legislators and forwarded to the Senate for further action. Assemblymember Carl DeMaio from San Diego cast the sole negative vote. This vote took place after a similar bill concerning California’s entertainment tax credit program had been approved in the state Senate earlier in the day, without the governor’s previously pledged financial contribution being included in the revised legislation.
The decision lends strength to union and studio efforts aimed at revitalizing film production in California, despite financial challenges the state is currently facing. Governor Newsom has expressed his commitment to one of California’s key industries, although it’s likely that current or future state services may be reduced or scaled back due to budget issues.
As a staunch supporter, I wholeheartedly echo the sentiments expressed by the bill’s advocates yesterday. The California film and television industry, an integral part of our state’s identity, is currently grappling with a crisis. I, as co-author Assemblymember Rick Zbur, representing the region spanning from Hollywood to Santa Monica, have witnessed the struggle firsthand before the recent vote. The hardworking individuals and small businesses that form the backbone of this industry are enduring unemployment rates reminiscent of the Great Depression and a significant loss of business as our iconic industry is being enticed away by other states and countries boasting better financial incentives.
Supporters of the bill such as Assemblymembers Tom Lackey, Mike Gibson, and Sharon Quirk-Silva stressed that the suggested legislation is primarily about creating jobs rather than providing aid to Hollywood.
Lackey, representing the High Desert, stated, ‘It turns out we underestimated ourselves a bit in this film project, thinking we were superior to everyone else and had all the answers, like a bag of chips might suggest. However, other regions saw this as a challenge and decided they would not only rival us but also take over our industry.’
He pointed out that the law wouldn’t be a savior for Hollywood, but taking this step would help California compete effectively against other states and nations by offering more appealing incentive programs.
However, during Tuesday’s session, DeMaio was the lone critic of the bill. He argued against it, characterizing the proposed legislation as an ineffective strategy aimed at favoring politically influential figures in Hollywood. Instead, he advocated for policies that would promote California’s prosperity for everyone, not by bestowing tax credits on the influential, but rather by implementing measures that would lower costs for all.
DeMaio pointed out that California’s heavily unionized Hollywood workforce and strict regulations were likely causes for productions leaving the state, not the tax credit. “This bill doesn’t address labor costs or regulatory burden,” he stated. He further explained that the bill aims to lessen the impact of some of these unfavorable policies.
The revised legislation no longer includes Newsom’s promise to elevate the yearly film and TV incentives cap from $330 million to $750 million, a provision also absent in its corresponding Senate bill. Supporters argue that the figure isn’t necessary in the bills if Newsom’s budget is approved instead.
Despite the fact that providing Medi-Cal benefits to undocumented immigrants and Medi-Cal coverage for weight-loss drugs like Ozempic were not included, the $750 million figure remained in Newsom’s revised budget, which was revealed in May.
The revised law further extends the tax credit program, which focuses on educating workers from traditionally marginalized groups for roles in the movie and TV industry, by making it accessible to more charitable organizations as well.
In an indication that things are still up in the air and the situation remains dynamic, industry unions and the grassroots group Stay in L.A. are urging their members to keep reaching out to and contacting their state representatives to back the proposed bills. “This is just one of the multiple steps we have yet to take,” a coalition of entertainment unions informed their members following the passage of the Assembly and Senate bills on Tuesday.
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2025-06-04 20:57