Landmark Film and TV Jobs Legislation Passes Legislature, Heads to Governor’s Desk

SACRAMENTO, CA—Democratic Caucus Chair and Assemblymember Rick Chavez Zbur announced today that AB 1138, the California Film & Television Jobs Act, has officially passed both the Assembly and Senate with strong bipartisan support and is now headed to Governor Gavin Newsom’s desk for signature. AB 1138, authored by Assemblymember Zbur (D-Hollywood) and Senator Ben Allen (D-Santa Monica), and jointly authored by Assemblymember Isaac Bryan (D-Los Angeles), Assemblymember Sharon Quirk-Silva (D-Fullerton), Senator Caroline Menjivar (D-San Fernando Valley), Senator Sasha Renee Perez (D-Pasadena), and Senator Henry Stern (D-Los Angeles), modernizes and strengthens California’s Film and Television Tax Credit Program—helping to retain and grow jobs, support small businesses, and reestablish California’s competitive edge in the global entertainment market.

Key provisions of the bill: 

• Raise the base tax credit rate from 20% to 35% and from 25% to 40% for productions relocating from other jurisdictions.
• Increase the overall qualified expenditures for films, TV shows, and mini-series applying to the program.
• Maintain tax uplifts in the current programs including the 5% uplift for filming outside the Los Angeles Zone and an additional 5% for qualified wages paid to individuals living and working outside the zone.
• Provide up to 2% uplift to productions who hire 1 to 4 trainees without displacing anticipated hiring of experienced workers.
• Expand the definition of “Qualified Motion Picture” while retaining the $1 million minimum spending requirement per production to include 20-minute television shows, animation, reboots, and certain large-scale competition shows.
• Allow more independent productions to qualify for the tax credit and increase the set aside for independent productions from 8% under the current program to 10%.
• Eliminate the 50% Ownership or 10-year-lease requirement for productions utilizing a certified sound stage in the Soundstage Film Tax Credit Program.
• Increase incentives for Independent Productions.
• Provide the California Film Commission with more flexibility to move tax credit dollars across different categories to meet current demands.

• Strengthen the existing program’s reporting requirements to ensure an employee’s voluntarily given veteran status and the aggregated ZIP codes of employees on a production are reported to the Film Commission.

The votes on AB 1138 follows Wednesday’s celebration of budget trailer bill SB 132’s recent signing, which includes Governor Newsom’s proposed expansion of the program—from $330 million to $750 million—in the state budget. The California Film and TV Jobs Act represents the second and final step in implementing that historic investment, ensuring that California gets the greatest possible return on the $750 million.

“Today we’re setting the stage, rewriting the script, and getting ready for a comeback—a comeback for workers, a comeback for small businesses, and a comeback for the beating heart of California’s creative economy,” said Assemblymember Rick Chavez Zbur (D-Hollywood). “For more than a century, Hollywood has stood as a symbol of dreams and opportunity, not just for California, but for the world. But in recent years, that promise has been slipping away. With today’s nearly unanimous vote to pass the California Film & TV Jobs Act, California is shattering the status quo and giving one of our most iconic industries the tools it needs to change the ending.

“I’m proud to have partnered with lead author Senator Ben Allen, our joint authors from both the Assembly and Senate, and our colleagues across the Legislature. I’m also deeply grateful to Governor Newsom, Speaker Rivas, and Senate Pro Tem McGuire for helping us protect not just an important industry, but an industry that represents the very identity of our state.”

“The passage of AB 1138 today is something to be celebrated,” said Senator Ben Allen (D-Hollywood). “For decades, California has been the premier destination for creators, artists, and entertainers alike, but that has been challenged over recent years by other jurisdictions around the globe putting forward massive incentives to lure production away, hurting working people in our state. The steps taken today highlight our commitment to bringing the work back home, and I am grateful for all of the leaders and everyday folks who worked hand-in-hand to get this across the finish line!”

“California has always been and will always be the heart of the entertainment industry,” said Assemblymember Isaac Bryan (D-Los Angeles). Our artists, teamsters, laborers, creatives, and behind the scenes heroes—are the best in the world. Today we are making an investment in them, in their stories, and in our collective futures. Communities across the state will see benefits because we are putting people back to work and keeping California rolling.”

“Passing AB 1138 is a victory for California’s workers, who continue to innovate and require legislators like myself and my fellow co-authors to do the same,” said Assemblymember Mike A. Gipson (D-Carson). “I commend my colleagues for today’s absolutely necessary step to amend, update, and modernize the California Film and Television Tax Credit Program – incentives which collectively have become an absolute necessity for livelihoods across Los Angeles County. As important as this legislation will be towards the industry’s overall health, I would like to point out how this bill’s expansion of career pathways programs will be equally far-reaching, bringing underserved communities to the table for years to come.”

“I’m thrilled to see AB 1138 move forward and head to the Governor’s desk,” said Assemblywoman Sharon Quirk-Silva (D-Fullerton). “This bill helps protect good-paying, union jobs and supports the workers who make up the backbone of our film and television industry. Thanks to the leadership of Assemblymember Zbur, Assemblymember Bryan, and Senator Ben Allen, we can ensure California remains the home of storytelling and opportunity.”

“When AB 1138 is enacted, the people of Burbank, the San Fernando Valley, and all of California will benefit from ensuring our historic entertainment industry stays in our state! This increase in available credit is not just about the major studios, it will serve as an economic stimulus and keep good-paying jobs in Senate District 20,” said Senator Caroline Menjivar (D-San Fernando Valley). “We are home to food vendors, labor unions, enrollees in entertainment workforce development and education programs, and small businesses in the restaurant, tourism, and retail spaces that count on this industry for their families’ livelihoods. Film industry giants such as Warner Bros and Walt Disney Studios have called the San Fernando Valley home for almost a century. Shows like The Brady Bunch, The Fresh Prince of Bel-Air, Friends, and Full House were filmed on Valley sets. These iconic shows didn’t just entertain us, they provided my district with a flourishing economic network that continues to create jobs and support families to this day. California depends on keeping the entertainment business and jobs in California.”

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,” said Senator Henry Stern (SD 27 – Los Angeles). “Updating the California Film & TV Tax Credit program is about protecting these middle-class jobs, supporting union families, and keeping my hometown vibrant with opportunity. The Film Tax Credit is about honoring the everyday workers behind the scenes who power California’s creative economy.” 

“We want to express our thanks and appreciation to Assemblymember Zbur for being an unwavering advocate in championing AB 1138 and reaffirming the value our members and our industry bring to California’s economy,” said Rebecca Rhine, Entertainment Union Coalition President, Directors Guild of America (DGA) Associate National Executive Director and Western Executive Director. “With both the passage of AB 1138 and the expanded funding secured, the focus now shifts to getting people back to work. The Governor, the Legislature and the unions have done their part and now it is up to the studios and streamers to commit to do theirs.  Let’s get California rolling again.”

"Congratulations to bill authors Assemblymember Rick Chavez Zbur and State Senator Ben Allen, Senate President Pro Tempore Mike McGuire, Assembly Speaker Robert Rivas, and champions throughout the legislature on this transformative achievement for California’s creative economy,” said Charles Rivkin, Chairman and CEO of the Motion Picture Association. “By unifying these vital programmatic improvements with recently expanded funding, the state will retain high-quality jobs, attract future investment, and further its legacy in film and television production. We also commend Gov. Newsom for his instrumental leadership during the legislative process and appreciate him signing this important legislation into law in the coming days.”

 

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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.