Overview

• Gov. Gavin Newsom signed the budget trailer bill on July 2, enacting a $750 million annual cap for the state’s film and television tax credit program.
• The new credits, now refundable for companies without state tax liability, took effect immediately under the 2023 extension.
• The California Film Commission will open applications for the expanded program on July 7.
• Proponents say the boost will counter moves by rival states such as Georgia and Texas and help revive production slowed by strikes, the pandemic and wildfires.
• AB 1138 remains under legislative review to broaden eligibility to animation, sitcoms and competition shows and to raise credit rates for Los Angeles and out-of-zone projects.