California Film and TV Tax Credit Expansion Passes First Committee Vote

One of two bills designed to combat the loss of film and television productions in California by expanding the eligibility rules for the state’s tax incentive program passed its first committee vote on Tuesday.

Assembly Bill 1138, the California Film & Television Jobs Act, was passed by the CA Assembly Committee for Arts, Entertainment, Sports and Tourism and now advances to a hearing by the Assemble Revenue and Tax Committee next week. A hearing for a companion bill, Senate Bill 630, is scheduled for Wednesday.

“California’s film and television industry isn’t just part of our cultural identity — it’s an economic powerhouse that supports hundreds of thousands of good-paying jobs,” said Hollywood Asm. Rick Chavez Zbur, who is a co-author on the bill. “But without swift action, we risk losing it all. AB 1138 & SB 630 are about making sure California stays competitive, so that workers aren’t forced to leave the state — or the industry they love — to make a living. This is a jobs bill, a small business bill, and a bill to keep our creative economy right where it belongs: here in California.”

Among the changes proposed by the two bills include reducing the runtime required for a TV show to be eligible for incentives from 40 minutes to 20 minutes. The 40-minute limit was set during the last overhaul of the tax credit program in 2014 to emphasize prestige TV dramas, which were declining in California at the time.

But with TV production in Los Angeles County down 30% year-over-year and 58% from its all-time high in 2021, according to FilmLA, a reduction in the runtime requirement would allow sitcoms and other half-hour shows that provide a significant number of production jobs to be eligible for tax credits.

The bill also proposes expanding the eligibility list for the credit to include “animation films, series, shorts and large-scale competition shows” with a minimum budget of $1 million. 

To further incentivize production in Los Angeles, the bill proposes increasing the tax credit to 35% for any production that shoots within the thirty-mile radius of Beverly and La Cienega Boulevard, as well as other Southern California shooting locations such as Agua Dulce, Pomona and Ontario International Airport.

“Today’s committee vote to pass AB 1138 sends a clear message to California’s entertainment workers, storytellers, and the thousands of businesses that service this industry in all corners of the state,” said Culver City Asm. Isaac Bryan. “We see you, we value you, and we will fight for you.”

“California’s film and television industry is part of who we are as a state. As productions move elsewhere, we risk losing not just jobs, but a piece of our cultural identity,” said Fullerton Asm. Sharon Quirk-Silva. “I am proud to support AB 1138 and SB 630, and I thank Assemblymember Zbur and Senator Allen for their leadership in keeping California the heart of the entertainment world. This bill helps ensure that the workers and families who power this industry can continue to thrive right here at home.”

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