Newsom Signs $10M Post-Production Tax Credit to Keep Hollywood Jobs in California
California's Governor Gavin Newsom has enacted AB 2319, which introduces a $10 million tax incentive aimed at preserving post-production jobs within the state. This legislation, which received approval from both the Assembly and Senate last month, was championed by the Motion Picture Editors Guild and the California Post Alliance, who initially requested $100 million. Scott George, the guild's director, hailed the day as “historic.” The tax credit permits productions to shoot in different locations while benefiting from in-state post-production support, with a requirement that 85% of the funds are allocated to union jobs. Assemblyman Nick Schultz (D-Burbank) highlighted that the industry, which employs approximately 12,000, has seen a loss of 1,874 jobs over the past two decades. Additionally, Newsom signed SB 186, which lifts the $5 million cap on corporate tax credits for independent films.
Key facts
- Governor Gavin Newsom signed AB 2319, creating a $10 million post-production tax credit.
- The bill passed the California Assembly and Senate last month by wide margins.
- Supporters, including the Motion Picture Editors Guild, had sought a $100 million credit.
- The new credit allows productions to film elsewhere but still receive subsidies for in-state editing and VFX work.
- California’s existing $750 million film and TV tax credit requires 75% of a project’s budget to be spent in California.
- The bill was amended in May to require 85% of funding go to jobs with union-level wages and benefits.
- Assemblyman Nick Schultz (D-Burbank) led the legislative effort; the post-production industry employs about 12,000 people in California and has lost 1,874 jobs over 20 years.
- Newsom also signed SB 186, which exempts independent films from the $5 million corporate tax credit cap, accelerates refundable tax credit payback from five to two years, and extends the expiration of old non-refundable credits from nine to 15 years.
Entities
Artists
- Gavin Newsom
- Scott George
- Nick Schultz
Institutions
- Motion Picture Editors Guild
- California Post Alliance
- California Assembly
- California Senate
- California State Assembly
- State Senate
- TheWrap
- Yahoo!
Locations
- California
- United States
- United Kingdom
- Canada
- Australia
- Spain
- New York
- New Mexico
- New Jersey
- Burbank
- Golden State