California Legislature Approves Faster Tax Credit Redemption for Film and TV
The California Legislature approved SB 186, which permits film and television studios to convert state tax credits into cash after two years rather than the previous five. This change addresses issues related to a $5 million annual limit set in June. The bill, which received backing from legislative leaders and Governor Gavin Newsom's office, excludes independent film credits from this cap and extends the duration for old non-refundable credits from nine to as long as 15 years. MPA CEO Charles Rivkin remarked that this agreement will help keep the program competitive. Additionally, Hollywood unions sent approximately 450,000 supportive letters. Meanwhile, AB 2319, a tax incentive for post-production, passed the Senate 33-5 and the Assembly 72-2, pending Newsom's approval by September 30.
Key facts
- SB 186 passed both California legislative chambers before midnight Monday deadline.
- Studios can now redeem tax credits for cash in two years instead of five.
- Independent film credits are fully exempt from the $5 million annual cap.
- Expiration date for old non-refundable tax credits extended from 9 to up to 15 years.
- MPA and EUC argued the cap would undercut the $750 million film and TV incentive.
- Hollywood unions sent about 450,000 letters to lawmakers.
- AB 2319, a post-production tax incentive, passed Senate 33-5 and Assembly 72-2.
- AB 2319 allocates $10 million if signed, supporters had sought $100 million.
- Governor Newsom has until September 30 to sign AB 2319.
Entities
Institutions
- California Legislature
- Assembly
- Senate
- Motion Picture Association
- Entertainment Union Coalition
- Motion Picture Editors Guild
- Netflix
- Variety
Locations
- California
- United States