California Governor Gavin Newsom signed a bill that creates a new tax credit for post-production work in California, the governor’s office announced Friday.
The bill, AB 2319, provides a 35% to 50% tax credit for qualifying expenses related to editing, sound, music, visual effects, finishing and other post-production processes completed in state. The bill was carried by state Assemblymember Nick Schultz (D-Burbank).
Productions do not need to shoot in California to qualify for the incentive. The pre-existing parameters for California program’s for film and television tax credits had already included post-production work, but only if 75% of filming or overall spending occurred in the state.
The budget agreement in AB 2319 includes $10 million as startup funding for the program. The original formulation of the bill sought a $100 million allocation for the credit. Schutlz’s office shared that the assemblymember would look to increase funding in next year’s budget.
Other state film and television programs already included tax incentives for post-production work, including those in New York, New Jersey, Georgia and New Mexico. Additionally, similar incentives also existed abroad, luring work overseas away from Hollywood over the years.
Along with AB 2319, Newsom also signed Bill 186, which goes into effect in 2027 and expands California’s film and television tax credit program by enhancing refundability for credits and exempting certain independent productions from temporary credit.
“California is the nation’s entertainment capital,” reads a statement by Newsom. “It is the home of storytellers, dreamers, artists, entrepreneurs, and creators who define culture for the rest of the world. This legislation protects the extraordinary people who make this industry possible and makes it unmistakably clear: California is still the future of film and television. We have the talent. We have the infrastructure. We have the creative community. And we have an ecosystem that simply cannot be replicated anywhere else.”
Editors Guild national executive director Scott George released a statement: “This is a historic day for Editors Guild members and for California’s film and TV workers more broadly. AB 186 ensures that the California Film and TV Tax Credit Program continues to drive the recovery of our industry in its historic home, and AB 2319 will complement the program by making sure that even projects shooting outside of our state can come back to California to employ Editors Guild members in post-production. We owe a debt of gratitude to the Governor for his signatures today and for his record as a longstanding champion of our industry, to Assemblymember Nick Schultz and to all the legislators who recognize the value of entertainment industry workers to our state’s economy, to the California IATSE Council for its powerful advocacy, and, of course, to our partners in the California Post Alliance.”
California Post Alliance president Marielle Abaunza wrote,” Today marks a historic new chapter for California’s post-production workforce. The signing of AB 2319 recognizes the vital role that behind-the-scenes craftspeople play in California’s creative economy. We are deeply grateful to Governor Newsom who, by establishing California’s first ever standalone post-production tax incentive, has given hope to thousands of post-production workers. We are so grateful to Assemblymember Nick Schultz and his entire team for authoring this bill and championing our segment of the industry every step of the way. With the support of our co-sponsors MPEG (Local 700) we got this bill across the finish line on behalf of the community we love, and what better place to shine a light on our post community than the stage of an organization like the Television Academy – one that celebrates and elevates the craft we’re so proud to be part of.”
Both signings come after California lawmakers voted to boost the state’s production incentive program from $330 million to $750 million. The governor’s office says the expansion has brought 170 projects to the state, along with $6.6 billion in economic activity and nearly 35,000 cast and crew jobs.
