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Committee approves overhaul of film and television tax credits to retain industry jobs
Summary
AB 1138 passed the committee with bipartisan sponsorship; the bill increases incentives, expands eligible productions and boosts allocations for independent and out‑of‑zone projects to keep production and union jobs in California.
Assemblymember Zibur and several coauthors presented AB 1138, a package of changes to modernize California's Film and Television Tax Credit program. Sponsors said the bill is focused on preserving and creating middle‑class, union jobs in the entertainment industry amid competition from other states and countries.
Rebecca Ryan of the Directors Guild and Renata Ray of IATSE Local 44 testified in support, saying the industry has suffered production declines from the pandemic, strikes, wildfires and out‑migration of projects. Ryan said the bill raises the base credit, adds uplifts for production outside Los Angeles, increases the independent production allocation and speeds reallocation of unused funds so more projects can access credits.
Supporters emphasized the job and payroll benefits of production spending: testimony cited multipliers and job counts and argued the credits produce measurable economic output. Dozens of union representatives, small vendors and studio representatives registered in favor during the hearing. Committee members thanked authors for negotiations with labor and industry and advanced the measure to the Assembly Committee on Revenue and Taxation.
