AB 1138 and SB 630, introduced by Assemblymember Rick Chavez Zbur and Senator Ben Allen, with joint authorship from Assemblymember Isaac Bryan, will strengthen and modernize the Hollywood Film Tax Credit, keeping productions and jobs in California.
SACRAMENTO, CA – Today, Assemblymember Rick Chavez Zbur (D-Hollywood) and State Senator Ben Allen (D-Santa Monica), and joint author Assemblymember Isaac Bryan (D-Culver City) announced the introduction of AB 1138 and SB 630, legislation aimed at modernizing California's Film & Television Tax Credit Program to retain and grow jobs and small businesses that support the entertainment industry and reinforce California's leadership as the global hub of creativity and innovation.
Governor Gavin Newsom recently proposed increasing the Film & TV Tax Credit Program to $750 million annually, aiming to cement California's position as the top destination for film and television production. Until recently, the entertainment industry accounted for over 200,000 direct jobs in California and resulted in billions of dollars in economic activity. However, other states and countries have adopted highly competitive film and television tax incentives, luring jobs and productions away from California. This bill modernizes the program to assure that California's programs protects our jobs, remains competitive and allows California to retain its leadership in this industry.
"Hollywood was born here in California and this iconic industry is a cornerstone of our economy, providing hundreds of thousands of high-skilled, high-wage jobs, supporting thousands of small businesses, and generating more than $26 billion in economic activity since the film tax credit's inception," said Assemblymember Zbur. "California is experiencing significant competition from other states and countries because of aggressive tax incentive programs. This has led to a drop in film and television production in California, which has been significant, and the job and small business losses are harming our communities. This isn't just about red carpets and award shows. This is about middle-class jobs, small businesses and economic opportunity. It funds our schools, bolsters our communities and keeps California a global leader in entertainment. To keep these jobs and economic benefits in California, we must take bold action to strengthen and modernize the Hollywood Film Tax Credit."
Since its launch in 2009, the program has been oversubscribed every year, with more productions applying for credits than it can accommodate. Data from recent years shows that limited tax credit funding—combined with growing competition from other states and countries—has led to lost production spending, job losses, and significant economic impacts on local communities.
"It's critical we continue to invest in our film and television industry," said Senator Allen. "This expansion will create jobs, support local businesses, and help bring production back to California. By providing increased funding for this program, we will also ensure that the state remains competitive, takes advantage of existing infrastructure, and continues to be a beacon for creativity and economic growth."
The Film & Television Tax Credit Program has already proven highly successful in generating economic activity, with each tax dollar approved resulting in a return of $24.40 in output, $16.14 in GDP, $8.60 in wages, and $1.07 in state and local tax revenue. The bills introduced by Zbur, Allen, and Bryan are designed to modernize and strengthen the program to meet the growing demand, bringing even more projects to California and fueling the state's economic recovery.
"The film industry is a vital economic engine for all of California," said Assemblymember Bryan. "Our investments in production and storytelling uplift communities and drive opportunity. The economic benefits our state receives is multiplied by every dollar we invest. We have to protect creativity and we have to protect the livable wage jobs that are required to bring that creativity to life."
Zbur and Allen both serve on the California Film Commission. All three authors represent districts with a significant number of employees in the arts and entertainment industry. AB 1138 and SB 630 will be referred to respective policy committees in the coming weeks.
Assemblymember Rick Chavez Zbur serves as the Democratic Caucus Chair for the California State Assembly and represents the 51st Assembly District, which includes Universal City, Hollywood, Hancock Park, West Hollywood, Beverly Hills, Westwood, West Los Angeles, Santa Monica, and other portions of Los Angeles.
Ben Allen represents the 24th State Senate District, which consists of the Westside, Hollywood, coastal South Bay, and Santa Monica Mountains communities of Los Angeles County.
Isaac Bryan represents California's 55th Assembly District which consists of Baldwin Hills, the Crenshaw District, Culver City, Ladera Heights, Mar Vista, Del Rey, Palms, Pico-Robertson, Beverly Grove, Mid-Wilshire, and large parts of South Los Angeles.
MEDIA CONTACTS: Vienna Montague | vienna.montague@asm.ca.gov
Ben Cheever | ben.cheever@sen.ca.gov