California Legislators Pass Bill Expanding State’s Film and TV Tax Incentive

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After several grueling months of negotiations and bargaining, I’m thrilled to share that the California State Assembly and Senate have approved a bill, which substantially broadens the scope of California’s film and television tax credit program. This proposed legislation is now waiting on Gov. Gavin Newsom’s desk for his approval.

This bill, AB 1138, is set to increase the base tax credit rate for filming within our state to 35%, and productions moving here from other states or countries could potentially receive up to a 40% credit. Furthermore, this legislation broadens the types of productions that can qualify for these incentives. Now, animation, 20-minute TV programs, and big-budget competition series worth at least $1 million may all be considered eligible.

One day following the significant financial enhancement of the film and TV tax credit program, the legislature has granted its approval. This happened after Governor Newsom signed a bill, which increased the program’s limit from $330 million to $750 million as part of the state budget.

In a Thursday morning meeting, the state Senate – the final step for the bill prior to Governor Newsom – approved the legislation with a vote of 32 to 2. The two senators who abstained were Sen. Marie Alvarado-Gil and Sen. Roger Niello, both representing the Republican party.

Representative Rick Chavez Zbur from Hollywood, who led the initiative in the Assembly, expressed that this action symbolizes a resurgence for workers, a resurgence for small businesses, and a resurgence for the pulsating core of California’s artistic industry.

The text is about to expire on the 7th of July, which is the final date for applications from productions aiming to utilize California’s tax incentives.

On Thursday, there was an influx of statements from both production advocates and union representatives who had previously lobbied in Sacramento for this cause.

In her jubilation over the law, SAG-AFTRA president Fran Drescher expressed hope for a “busy season of filming” to come. The Entertainment Union Coalition stated that these rules becoming active will allow their members to resume work in their local areas (and as is customary for labor groups, they urged studios to promise to facilitate this return to work).

More to come.

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2025-07-03 20:54