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Assembly approves AB 1138 to modernize film and television tax-credit program; urgency clause adopted

5134067 · July 3, 2025
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Summary

On June 4, 2025, the California State Assembly concurred with Senate amendments to AB 1138, a package to modernize the California Film and Television Tax Credit program, approved an urgency clause and ordered immediate transmittal to the governor with a 65–1 vote on the urgency measure.

The California State Assembly on June 4, 2025, voted to concur with Senate amendments to AB 1138, a bill to modernize the California Film and Television Tax Credit program, and approved an urgency clause that requires immediate transmittal to the governor after the measure cleared the Assembly floor.

The bill’s author, Assemblymember Zivar, said the legislation is intended to make California more competitive and to keep production jobs and related businesses in-state. “Filmmakers want to stay in California, but it's incumbent on us to keep our state competitive,” Zivar said on the Assembly floor. She told members the bill modernizes the tax-credit program and adds a targeted incentive for training new entrants from underrepresented communities without displacing union jobs.

Zivar argued the measure is needed amid a decline in production and jobs moving to other jurisdictions. She referenced recent changes to the state's film tax-credit program, saying the Legislature previously expanded funding through SB 132 and that AB 1138 is the companion measure to direct that investment across the state.

Supporters on the floor framed the bill as an economic and workforce measure. “This is absolutely a game changer,” Assemblymember Gibson said, adding the package would support small businesses, crew and craftspeople beyond Los Angeles and across Northern and Southern California. Assemblymember Colosa, a co-author, said the bill aims to restore steady work for families who have been affected by the downturn in production.

Debate concluded with the clerk closing the roll and tallying votes. The urgency measure required a 54-vote threshold; the clerk recorded Ayes 65, Noes 1 for the urgency clause. The clerk also recorded concurrence with Senate amendments; the measure was ordered immediately transmitted to the governor.

Background: supporters said AB 1138 seeks to pair with prior budgetary action to direct tax-credit dollars in ways that promote jobs statewide and create training pathways for underrepresented workers. The bill’s backers credited a broad coalition of labor, industry and small-business groups for helping shape the measure.

The Assembly record shows the bill passed concurrence and the urgency vote on June 4, 2025, and the bill was sent to the governor’s office for consideration.