Assembly Bill 1138, which expands the eligibility rules and benefits for California’s Film and TV Tax Credit Program, has passed the state senate and was signed into law by Gov. Gavin Newsom on Wednesday.
The bill, which is being passed four days before the next round of applications for TV productions looking to receive tax credits opens, expands the types of productions that can apply for the incentive, including half-hour TV series, animation and large-scale competition series.
The new program also increases the base rate for the tax credit from 20% to 35% with a raised per-production cap of $120 million. Credits allocated for independent productions have also nearly tripled from $26 million to $75 million.
The Entertainment Union Coalition, which consists of all of Hollywood’s top labor orgs including SAG-AFTRA, WGA, DGA and IATSE, praised the bill’s passage after months of lobbying in Sacramento.
“To truly revitalize our industry throughout the state and retain and create the greatest number of jobs, both the expansion and modernization of this program needed to take effect together in July. Thanks to the tireless efforts of our members and our allies, that goal has now been achieved,” the EUC said in a statement.
The EUC also thanked the bill’s authors, led by Los Angeles-based Asm. Rick Zbur and Sen. Ben Allen, as well as Gov. Newsom, who threw his support behind a raise of the program’s overall cap from $330 million to $750 million. Zbur and Allen led a push in the state legislature to get the bill passed two months ahead of the end of the legislative session to allow for the expanded program to be implemented as quickly as possible.
“Through coordinated action and persistent advocacy, including the ‘Keep California Rolling’ campaign, we fought for a program that was about jobs, families and businesses,” the EUC said. “Now, we can look forward to our members getting back to work where they live, and we call on the studios to commit to making that happen.”
“Today’s momentous vote sets the stage for California to reestablish its prominence in film and television production,” the California Production Coalition added in another statement. “The California Production Coalition commends Gov. Gavin Newsom, Senate President Pro Tempore Mike McGuire, Assembly Speaker Robert Rivas, and lead bill sponsors Assemblymember Rick Chavez Zbur and Senator Ben Allen for their leadership and unwavering support of the state’s entertainment sector and the workforce that drives it.”
They continued, “This essential programmatic enhancement – matched with last week’s expanded funding – raises California’s competitiveness and opens the door for new projects across the state. We’re grateful to our elected officials in Sacramento, whose actions will uplift the vendors, businesses and families touched by this iconic industry.”
Motion Picture Association (MPA) chairman and CEO Charles Rivkin also praised the expansion.
“California is the home base of the entertainment industry – and Gov. Gavin Newsom and the state legislature today reaffirmed a commitment to bolster its long-standing role in motion picture production,” Rivkin said in a statement. “Strengthening this vital incentive is a direct investment in the local workers, small businesses, and communities that depend on a thriving entertainment ecosystem. On behalf of the film, television, and streaming industry, we applaud the Governor, Senate President Pro Tempore Mike McGuire, Assembly Speaker Robert Rivas, Assemblymember Rick Chavez Zbur, State Senator Ben Allen, and policymakers statewide for drafting the script on the next great chapter of creativity and economic opportunity for Californians.”
