The Overview

If you work in film or TV post-production in California, a new state tax credit of 35 to 50 percent on qualifying in-state costs became law when Gov. Gavin Newsom signed AB 2319 on Sept. 19. Post-production work, including editing, sound and visual effects, had been moving out of California, and the state's existing film incentive did not cover it unless a production met broader in-state filming or spending thresholds, the Los Angeles Times reported. The law took effect immediately upon signing. ​

What the Law Does

The law creates a standalone credit against California personal income and corporate taxes equal to between 35 and 50 percent of qualifying post-production expenses on a qualified motion picture completed in the state, administered by the California Film Commission. Eighty-five percent of the total credits available each year must go to companies that swear under penalty of perjury they will meet specified labor conditions.

The Film Commission uses a post-production services ratio to allocate credits among applicants, and the total credits available each fiscal year are set by the Legislature in the annual budget. If a qualified taxpayer's credit exceeds its tax liability for the taxable year, it can elect to be paid a refund. The Motion Picture Editors Guild described the law as a standalone post-production tax incentive intended to help bring film and television jobs back to California.

Legislative Status

Asm. Nick Schultz (D) sponsored the bill, with co-authors Asm. Pilar Schiavo (D), Sen. Ben Allen (D) and Sen. Tim Grayson (D). The Assembly passed the bill 73 to 3 on May 26. The Senate passed it 33 to 5 on Aug. 30, and the Assembly concurred in Senate amendments 72 to 2 the same day. Across those three floor votes, the bill drew just 10 total no votes in both chambers.

Gov. Newsom called the signing "a historic new chapter for California's post-production workforce," saying it "recognizes the vital role that behind-the-scenes craftspeople play in California's creative economy."

---

AllCiv makes it easy to stay politically informed and involved.

---

Spot something wrong? Report an issue with this article