Overview

• Lawmakers voted June 27 to more than double the annual cap on California’s Film & TV Tax Credit Program from $330 million to $750 million as part of the state budget agreement.
• The expansion aims to match New York’s newly raised $800 million incentive and Georgia’s uncapped program after production jobs in California fell 29% between 2022 and 2024.
• Entertainment Union Coalition President Rebecca Rhine led lobbying efforts that delivered a 64-1 Assembly vote and a 31-3 Senate vote in favor of the increase.
• A companion measure, AB1138, is expected to clear the Legislature next week and would lift the base credit rate to 35% for Los Angeles-area shoots and extend eligibility to animated films and shorter series.
• Industry voices caution that existing restrictions on above-the-line costs and post-production spending may still limit the state’s ability to fully retain and attract major projects.