California lawmakers support AB 11 38 to modernize film tax credit and protect jobs

California's Assembly Arts, Entertainment, Sports, and Tourism Committee has taken a significant step to bolster the state's film and television industry by advancing Assembly Bill 1138. This legislation aims to modernize the California film and television tax credit program, a vital initiative that has historically supported tens of thousands of jobs and generated billions in economic activity.

Assemblymember Brian, a co-presenter of the bill, emphasized the importance of the entertainment industry to California's economy and cultural identity. He noted that the tax credit is essential for retaining production jobs within the state, especially in light of recent challenges such as the COVID-19 pandemic, industry strikes, and fierce competition from other states and countries that have successfully lured productions away from California.

The bill proposes to increase the annual funding for the tax credit program from $330 million to $750 million starting July 1, 2025. This increase is designed to make California's incentives more competitive with those offered by other regions, including Georgia and Canada. The proposed changes also include raising the base tax credit rate and expanding the types of productions that qualify for incentives, particularly those that create and retain union jobs.

Supporters of AB 1138, including representatives from various entertainment unions, highlighted the urgent need for action as many workers in the industry face unprecedented unemployment levels. Nearly half of the unionized workforce is currently out of work, and the bill is seen as a critical measure to revive the industry and protect middle-class jobs.

The committee heard testimonies from numerous stakeholders, including labor representatives and small business owners, all advocating for the bill. They underscored that this initiative is not merely a corporate subsidy but a necessary investment in California's workforce and economy.

As the bill moves forward, it is poised to play a crucial role in revitalizing California's film and television sector, ensuring that the state remains a leader in the global entertainment landscape. The committee's actions reflect a commitment to supporting the livelihoods of those who contribute to the rich tapestry of California's cultural heritage.