State Sen. Ben Allen, D-Santa Monica, and Assemblymember Rick Chavez Zbur, D-Hollywood, have introduced AB/SB 186, a budget trailer bill aimed at protecting middle-class jobs tied to film and television production in the state.
The measure is designed to mitigate the impact of SB 122, a tax bill enacted in June to ensure corporations pay their fair share of state taxes. Lawmakers say SB 122 unintentionally imposed an additional cap on the already capped and allocated Film & TV Tax Credit Program, undermining commitments made to projects already underway.
"Last year, we took action to get families back to work and jumpstart the state's film and television industry," Allen said. He warned that momentum and jobs could be lost without action by month's end, and credited Gov. Gavin Newsom, Zbur and legislative leadership with helping find a path forward to keep California the global hub of entertainment.
Zbur said the effort protects progress made last year and reflects a priority shared by many colleagues. He noted the modernized program drew 170 projects to California and supported nearly 35,000 cast and crew jobs in its first year. He said AB/SB 186 would provide greater stability for productions and workers and mitigate the effects of the tax credit limitation, while acknowledging more work remains in the coming months.
Last year, Newsom signed the California Film & Television Jobs Act, authored by Zbur and Allen, to modernize the Film and TV Tax Credit Program and curb "runaway production." The act, which won bipartisan support, raised the annual cap to $750 million, increased the credit amount and expanded eligibility.
The program's first year, from July 1, 2025, to June 30, 2026, awarded credits to 170 new projects, bringing an estimated $6.6 billion in economic activity and creating almost 35,000 jobs statewide.
AB/SB 186 would exempt independent productions from the SB 122 caps; lower the discount on refunds in the 4.0 program from 10% to 5% and provide payout over two years instead of five; and protect unused credits earned in the earlier 2.0 and 3.0 programs from premature expiration if the company has a project awarded under the 4.0 program.
Edited by SMDP Staff