UPDATED: California Gov. Gavin Newsom has now signed the bill, saying in a statement from his office that it would “further strengthen the state’s commitment to film and television production.” See the fuill text here.
PREVIOUSLY at 10:56 a.m.: California lawmakers have officially voted to amend the state’s Film & TV Tax Credit Program.
This week, the Senate approved and Gov. Gavin Newsom signed into law the bill that has been working its way through the Legislature meant to “modernize” the program and expand eligibility alongside the recently approved $750M in incentive funding.
In addition to expanding the qualification parameters, the bills propose increasing the available credit amount for an individual project from 20% to 35% for amounts paid or incurred in Los Angeles, also giving the California Film Commission leeway to allow for additional credit percentages by 5% in other areas of economic opportunity.
AB1138 also raises the per-production incentive cap to $120M and triples funding for independent films from $26M to $75M. The main goal of the program is to create jobs within the production industry, so the bill seeks to continue broadening access to career pathways via non-profit partnerships.
The additional funding and the proposed amendments both taking effect in July marks the best case scenario for these sought-after updates to the California Film & TV Tax Credit Program. Thursday’s news prompted an outpouring of positivity from organizations that fought hard to get this bill passed, including the Entertainment Union Coalition and the California Production Coalition.
“This essential programmatic enhancement – matched with last week’s expanded funding – raises California’s competitiveness and opens the door for new projects across the state,” the California Production Coalition said in a statement. “We’re grateful to our elected officials in Sacramento, whose actions will uplift the vendors, businesses, and families touched by this iconic industry.”
Added the EUC: “Through coordinated action and persistent advocacy, including the Keep California Rolling campaign, we fought for a program that was about jobs, families and businesses. Now, we can look forward to our members getting back to work where they live, and we call on the studios to commit to making that happen.”
StayinLA, a grassroots organization galvanized by the devastating Los Angeles fires in January, also celebrated the passage of AB1138 on Thursday. The group has encouraged collective action among some of Hollywood’s top producers, actors, writers and directors to bring physical production back to the city.
“StayinLA is thrilled by California’s renewed commitment to safeguarding our creative economy,” said Pamala Buzick Kim, co-founder of the organization, said in a statement. “This isn’t just policy—it’s a lifeline for working families, small businesses, and communities across Los Angeles still recovering from the devastating wildfires.”
“This victory is a testament to collective action,” added co-founder Alexandra Pechman. “From our original petition signed by over 23,000 Angelenos calling to uncap the incentive in the wake of the wildfires, to viral letter campaigns and in-person testimony in Sacramento, our StayinLA community mobilized to get this vital change across the finish line. AB 1138 reflects the realities of today’s production landscape and opens the door to a more sustainable future for our industry.”
The hope now is that physical production will start to grow within the state. That includes enticing new productions to shoot in California as well as encouraging recurring projects to relocate. In a news conference on Wednesday, Newsom announced that Prime Video’s Mr. & Mrs. Smith would be shooting Season 2 in Los Angeles County. It joins Fallout as two of the highest profile titles to recently move from New York to California.
Earlier this month, the California Film Commission awarded $96M in tax incentives to 40+ films. Perhaps reflecting the changing finances and current geographical realities of the industry, 43 of those 48 projects are independent films, with many working with budgets of $10M or less.
The post California Lawmakers Pass Amendments To Film & TV Tax Credit Program; Newsom Signs Bill – Update appeared first on Deadline.
