AB 1138 and SB 630, introduced by Assemblymember Rick Chavez Zbur and Senator Ben Allen, with joint authorship from Assemblymembers Isaac Bryan and Sharon Quirk-Silva and Senators Caroline Menjivar and Henry Stern, will strengthen and modernize the California Film & TV 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), along with joint authors Assemblymember Isaac Bryan (D-Los Angeles) and Assemblymember Sharon Quirk-Silva (D-Fullerton), and Senator Caroline Menjivar (D-San Fernando Valley) and Senator Henry Stern (D-Los Angeles), unveiled key provisions in AB 1138 and SB 630, legislation aimed at making California’s Film & Television Tax Credit Program more competitive with other states and countries. These enhancements seek to retain and expand entertainment industry jobs, boost small businesses that support production, and reinforce California’s status as the global leader in creativity and innovation. The authors also applaud Governor Newsom’s ongoing support for the film and television industry, including his commitment to expanding the tax credit program to $750 million as a cornerstone of California’s economic and cultural identity.
Key Provisions Include:
- Raising the base tax credit rate from 20% to 35% in the Los Angeles Zone
- Maintaining tax uplifts in the current programs, including the 5% uplift for filming outside the Los Angeles zone
- Expanding the definition of “Qualified Motion Picture” to include:
- Programs with an average runtime of 20 minutes per episode per season
- Animation
- Certain large-scale competition shows
- Retaining the $1 million minimum spending requirement per production
- Eliminating the 50% ownership or 10-year-lease requirement for productions utilizing a certified sound stage under the Soundstage Film Tax Credit program
- Providing more flexibility in the program
More key provisions are still being determined at this time. It is anticipated that the bill will be amended as it moves through the legislative process and as the authors work with stakeholders on potential additional program changes to make the program more competitive, including for independent films and for filming in targeted local production zones.
Since 2009, California has had a successful Film and TV Tax Credit program aimed at increasing production in our state. So far, the program has created 197,000 cast and crew jobs statewide, and generated $26 billion in economic activity. One report from the LA County Economic Development Corporation found this program has a high return of investment for California, reporting that for every dollar invested, there is an economic output of $24.40. In addition, for every dollar invested, there is a $16.14 output in gross domestic product (GDP), $8.60 in wages, and $1.07 in state and local tax revenue. Governor Newsom also acknowledged in a recent release that the latest round of awards under the program is projected to generate nearly $580 million in economic activity and employ more than 6,490 cast and crew members statewide.
"Modernizing the California Film & TV Tax Credit is essential to protecting film and television jobs," said Assemblymember Rick Chavez Zbur. "California’s iconic entertainment industry has created hundreds of thousands of good, high-paying jobs, but other states and countries are aggressively luring productions away with stronger incentives—threatening to dismantle the industry we built. This is a crisis. We cannot abandon the hard-working cast and crew who sometimes wait months or even years for their next job, or who are being forced to leave the state or the industry altogether. I don’t want to look back five years from now and ask why we didn’t take the steps to protect California’s signature industry and the jobs that depend on it when we had the chance."
“Film and television production is a vital economic engine for our state and an important part of our creative DNA,” said Senator Ben Allen. “We have watched as other industries have grown and then faltered, and we can’t simply sit back and watch as other jurisdictions step up and take our production work away. SB 630 and AB 1138 will revitalize our credit program so it may match the talent and ambition of the many dreamers, storytellers, and creatives who have worked, lived, and thrived in California for years.”
"As the son of a working actor on the big screen, I know the power of creativity and the profound impact the entertainment industry has on my community and district. Updating the California Film & TV Tax Credit program not only supports jobs and small businesses but ensures that the Golden State continues as the source of the most innovative and inspiring content,” said Senator Henry Stern (SD27-LA). “AB 1138 and SB 630 will help secure our legacy in the industry for generations to come, and I’m proud to stand with my colleagues to further strengthen my friends and neighbors who keep California CREATIVE!"
“The film industry is a vital economic engine for all of California,” said Assemblymember Bryan (D-Los Angeles). “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.”
“The motion picture industry is a cornerstone of California’s economy and our identity. For generations, film and television have shaped the way the world sees California, creating good jobs and enriching our culture,” said Assemblywoman Sharon Quirk-Silva. “Yet, as production leaves the state, the opportunities to sustain working families and strengthen local economies leave with it. This legislation is a necessary step to ensure that California remains the home of entertainment, where creativity thrives and the people who bring these stories to life can continue to build their futures.”
“My district is home to some of the world’s largest studios, which brings jobs, tax revenue, artists, and groundbreaking innovation in the entertainment industry to Burbank and San Fernando Valley,” said Senator Caroline Menjivar (D-San Fernando Valley). “It is also home to the workers, from food vendors to grips to electricians, that are behind the magic. California must secure the future of this industry in our state, and modernizing the Film & Tax credit program will ensure the jobs, operations, and the economic benefits they bring right here in California.”
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.
CONTACTS: Vienna Montague (Assemblymember Zbur) | vienna.montague@asm.ca.gov
Ben Cheever (Senator Allen) | ben.cheever@sen.ca.gov