California’s film and television tax incentive program is on the verge of a significant transformation.

On Wednesday, two bills were introduced that aim to “expand the kinds of productions” eligible for California’s film and television tax credit program, although the specifics are still being finalized.

SB 630 and AB 1138 are designed to “modernize the program components” to ensure California remains competitive and retains high-quality, union jobs while also supporting the growth of small businesses in the industry. This initiative is backed by Assemblymember Rick Chavez Zbur, who co-introduced the bills with Senator Ben Allen and Assemblymember Isaac Bryan, all of whom are Democrats.

According to Chavez Zbur, these bills will work “hand in hand” to make California “fully and truly competitive” with other states and countries. The primary focus of the legislation is job creation, emphasizing the need to modernize existing programs.

This announcement follows Governor Gavin Newsom’s plan last year to more than double California’s current cap for the tax relief program aimed at the entertainment industry. This aggressive move seeks to revitalize production across the state, which has suffered due to recent strikes and the ongoing exodus of films and television series from the region.

The urgency to enhance the program has intensified following the wildfires in Los Angeles, which have cast a shadow of uncertainty over an already challenging production landscape. There are growing concerns that these fires could accelerate the departure of the entertainment workforce from California.

Recent data from FilmLA indicates that production in Los Angeles is on the rebound. The three-month period from October to December saw increases in most filming categories, except for reality TV, which experienced its ninth consecutive quarterly decline. Overall, last year, the region recorded just 23,480 shoot days—the second lowest figure reported by FilmLA, following the pandemic-related halt in 2020.

If these bills are passed, California’s subsidy could become the most generous in the nation, second only to Georgia, which imposes no annual cap on production incentives. The proposed expansion could provide up to $3.75 billion in tax credits to the industry over five years starting in 2025.

However, whether productions will choose to shoot in California at levels comparable to historical norms will depend on additional changes to the program beyond just the cap increase. This includes broadening the types of eligible expenditures and production categories for tax credits, as well as increasing the maximum subsidy a single title can receive.

Stay tuned for more updates.

Persons

Rick Chavez Zbur, Ben Allen, Isaac Bryan, Gavin Newsom

Company Names

FilmLA

Titles

None

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