The Entertainment Union Coalition successfully concluded its nine-month campaign to expand, modernize and strengthen California’s Film and Television Jobs Program. In the week of June 30, the California Legislature approved a major funding increase, from $330 million to $750 million annually, and passed AB 1138 (Zbur/Allen), marking the program’s first significant reforms in over a decade. Governor Newsom signed both the funding increase and the legislative changes into law that same week.
Key program changes in AB 1138 include:
- Funding increase from $330 million annually to $750 million annually.
- Basic Tax Credit Rate increase to 35% for all participants, including independent productions.
- Raising the per production cap is increased to $120 million.
- Expanding the types of projects that can apply to include half-hour series, animation and large-scale competition shows.
- Enhancing incentives for filming outside the Los Angeles area, with credits up to 45% for certain expenditures on local labor hire and local services.
- Tripling funding for independent films from $26 million to $75 million and raising the per production cap along with the 35% base rate. Indie ownership increases to 30%.
- Increase to four application periods.
- A project that does not receive the credit in its first year but chooses to stay and film in California anyway can apply one additional time for its second year.
- Broadening access to career pathways by allowing more non-profit organizations throughout the state to partner with the program, opening doors to a broader range of Californians.
- The fundamental underpinning of the program, allocating resources to productions that create the most jobs, remains intact.