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Assembly advances bill to modernize film and television tax credits to retain jobs
Summary
AB 1138 would increase and restructure California’s film and television tax credit program, raising credit rates and independent production allocations and targeting incentives to retain union jobs; proponents said the measure is a jobs bill to counter production losses to other states and countries.
SACRAMENTO — The Assembly Arts Committee on April 22 passed AB 1138, a measure to modernize California’s Film and Television Tax Credit Program by increasing credit rates, expanding eligible production types, and raising allocations for independent productions.
Jointly presented by several authors and labor and industry witnesses, proponents described the bill as a jobs measure aimed at stemming production losses to other states and countries that have adopted more generous incentives. "California's iconic film and television industry is in crisis," Rebecca Rhine of the Entertainment Union Coalition testified. She told the committee the industry has seen declines in production and union employment: contributions to the Motion Picture Pension Plan fell roughly 30% from 2022 to 2024 and FilmLA reported a 22% decline in shoot days comparing Q1 2024 to Q1 2025.
AB 1138 would increase base credit percentages (proposal discussed moving the base toward 35%), add uplifts for productions filmed outside the Los Angeles zone, expand eligible genres, double opportunities to apply, raise the independent production allocation from $26 million to $75 million and revise timing rules for recurring series to return unused allocations to the program. Proponents emphasized the program’s competitive, jobs‑based structure — credits are awarded based on job ratios and are not paid until qualifying spending occurs.
Labor witnesses stressed the bill’s impact on thousands of middle‑class craftspeople, not corporate executives. “Passing the California Film and Television incentive will not serve billionaire corporations. This bill will preserve, replenish bridal‑class jobs,” Renata Ray of IATSE Local 44 said. The authors and supporters also noted Governor Newsom’s proposed budget increase from $330 million to $750 million annually beginning July 1, 2025, and argued programmatic changes are required to keep the industry in state.
The committee recorded the bill as passed and referred it to Revenue and Taxation. Supporters said they will continue to refine technical amendments with stakeholders and the budget committees.
