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A Major Win for California Film & TV Jobs

AB 1138 Passed into Law

AB 1138 Passed into Law

AB 1138 Passed into Law

EUC Statement – July 3, 2025: 

The Entertainment Union Coalition celebrates the passage of AB 1138 – which will modernize and strengthen California’s Film and Television Jobs Program. This bill, alongside the expanded program funding which was signed into law by the Governor yesterday in Burbank, represents the two critical elements our members and the Entertainment Union Coalition have been advocating for since January. 

 

To truly revitalize our industry throughout the state and retain and create the greatest number of jobs, both the expansion and modernization of this program needed to take effect together in July. Thanks to the tireless efforts of our members and our allies, that goal has now been achieved.


Key program changes include:


  • Increasing the Base Credit Rate to 35% for all participants, including independent productions.
  • Expanding the types of projects that can apply to include half-hour series, animation and large-scale competition series.
  • Raising the per-production cap to $120 million.
  • Enhancing incentives for filming outside the Los Angeles area, with credits up to 45% for certain expenditures.
  • Tripling funding for Independent films from $26 million to $75 million and raising the per production cap.
  • 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.

 

We would not be here today without the steadfast leadership of Assemblymember Rick Zbur and Senator Ben Allen. From day one, they recognized both the importance and urgency of this effort and were instrumental in ensuring the program remained focused on jobs. We also thank the bill’s co-authors who joined in advocating for a program that retains and expands union jobs, supports small businesses and keeps the entertainment industry thriving in California. 

 

We are deeply grateful for the support of Governor Newsom and members of the Legislature, who recognized and took action to protect the economic and cultural value of California’s entertainment workforce. Their commitment to fighting for these middle-class jobs that provide fair wages, health care and retirement with dignity deserves recognition. 

 

The power of our Entertainment Union Coalition and the solidarity and stories of our members are what made this possible. Through coordinated action and persistent advocacy, including the Keep California Rolling campaign, we fought for a program that was about jobs, families and businesses. Now, we can look forward to our members getting back to work where they live, and we call on the studios to recommit to making that happen.

Jobs Program Fact Sheet

AB 1138 Passed into Law

AB 1138 Passed into Law

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. 

Fact Sheet

Program Funding Doubles

AB 1138 Passed into Law

Program Funding Doubles

EUC Statement – June 27, 2025: 

The Entertainment Union Coalition applauds today’s announcement that the increased funding to our California Film and Television Tax Incentive Program is now official. Since Governor Newsom announced his intention to prioritize our program’s expansion late last year, our members’ activism has been the core driving force in our fight to retain and bring back good industry jobs to our state.

 

After numerous trips to Sacramento and over 250,000 letters to elected officials, our governor and state legislature followed through on their commitment to our members, their families, and the many small businesses that our industry supports. More than doubling the program’s allotted cap to $750 million annually underscores just how vital our industry is to the economic health of our state, and the power of our members’ voices.   

 

Despite a difficult budget year, continued fire recovery efforts, threats of federal funding cuts to our state, and the current disruption to our communities, the courageous leadership by Governor Newsom to expand this jobs program speaks volumes. We also owe thanks to Pro Tempore McGuire, Speaker Rivas and Budget Chairs Gabriel and Wiener for their commitment to our program and understanding the urgency of action.

 

The expanded funding of our program is an important reminder of the strength and resiliency of our members, the power of our broad-based union and guild coalition, and the role our industry plays in supporting our state’s economy. It’s now time to get people back to work and bring production home to California. We call on the studios to recommit to the communities and workers across the state that built this industry and built their companies.

 

Our final step is to get the programmatic changes in AB 1138, championed by our authors Assemblymember Rick Zbur and Senator Ben Allen, across the finish line next week to ensure the full value of the additional funding to secure the greatest number of jobs for our members and economic return for California. When our industry thrives, California thrives.


About Keep California Rolling

The Unions and Guilds in the Entertainment Union Coalition stand with Governor Newsom’s inclusion of an expanded $750 million annual California Film & Television Jobs Program in the 2025-2026 budget. Unlike other economic incentives, this program is directly tied to the creation of jobs for California workers, strengthens the economic future of California, and supports a healthy and viable motion picture industry by creating jobs where workers live.


For over a century, California has been the heart of the global film and television industry, supporting hundreds of thousands of middle-class workers and fueling a vast network of local businesses, tourism, and economic growth. However, in recent years, increasing competition from other states and countries, compounded by economic downturns, and devastating natural disasters, have put California’s entertainment workforce at risk. Productions are leaving the state in record numbers, resulting in significant job losses and economic hardships for thousands of industry professionals and their families.


Expanding California’s Film & Television Jobs Program is essential to ensuring the industry remains a major economic driver, supporting jobs, businesses, and tourism. Without this investment, California risks losing its status as the global entertainment capital, along with thousands of middle-class jobs and billions in economic benefits.


The information below highlights not only the impact of our entertainment industry throughout the state, but also the recent challenges and immense hardship of industry workers to keep California competitive, workers employed, and the industry rolling.


When our industry thrives, California thrives.

The State of the Industry

Economic & Workforce Impact

Economic & Workforce Impact

 The California film and television industry is facing an existential threat. While the state has long been a global entertainment hub, recent years have seen productions moving to other states and countries with more competitive incentives. Challenges such as corporate contraction and natural disasters have further impacted workers. Without decisive action, California risks losing thousands of middle-class jobs and billions in economic benefits.

Economic & Workforce Impact

Economic & Workforce Impact

Economic & Workforce Impact

 Film and television production supports thousands of middle-class jobs and provides critical income for local businesses. A robust incentive program ensures that industry workers, from camera operators to set designers, can continue working in their home state. The loss of productions to other regions has resulted in significant declines in employment and revenue, highlighting the urgent need for legislative intervention.

Governor Newsom's Proposal

Economic & Workforce Impact

How the CA Film & TV Jobs Program Works

Governor Gavin Newsom has proposed expanding the Film & Television Jobs Program from $330 million to $750 million annually to keep California competitive. This increase will help retain existing jobs, create jobs through pathway programs, attract new productions, and support businesses that rely on the entertainment industry. Without this expansion, California risks falling behind in the global production landscape.

How the CA Film & TV Jobs Program Works

How the CA Film & TV Jobs Program Works

How the CA Film & TV Jobs Program Works

 Unlike corporate tax breaks, the Film & Television Jobs Program is a direct investment in California’s workforce. Productions that receive the incentive must first hire local workers and spend within the state. This ensures that every dollar allocated leads to job creation, economic growth, and reinvestment in California’s creative industries.

Tourism & Local Business

How the CA Film & TV Jobs Program Works

Fire Impact & Industry Resilience

Film and television production fuels California’s tourism industry, drawing visitors to iconic locations featured on screen. The industry’s economic impact extends beyond the set, benefiting hotels, restaurants, and countless small businesses. Keeping productions in-state means sustaining this vital revenue stream for communities across California.

Fire Impact & Industry Resilience

How the CA Film & TV Jobs Program Works

Fire Impact & Industry Resilience

 California’s recent wildfires have further devastated the entertainment industry, displacing workers and damaging infrastructure. Despite these challenges, industry professionals have rallied together, offering support and resources for those affected. Expanding the Film & Television Jobs Program will provide a pathway to recovery for both the industry and the broader California economy.

BY THE NUMBERS

Economic Impact

Every dollar spent on California’s Film and Television Jobs Program generates $24.40 in economic activity, $16.14 in GDP, $8.60 in wages, and $1.07 in tax revenue returned to local and state governments. 

Job Loss & Production Flight

 Recent productions moving outside of California accounted for $1.46 billion in spending lost to our state, significantly impacting below-the-line production workers, local businesses dependent on the film and television industry, as well as tax revenue and contributions to both state and local governments.  


 From 2015 to 2020, 157 out of 312 projects (67% expenditure loss) that applied for but did not receive a California tax credit relocated to other states. 


If these productions had remained in California, the state would have reaped the economic benefits. Instead, the loss cost the state:


- $7.7 billion in generated economic activity 

- 28,000 total jobs

- Approximately $2.6 billion in labor income 

- $354.4 million in state and local tax revenues

Industry Decline

The Motion Picture Industry Pension & Health Plans (MPIPHP) reported 35 million fewer hours of employment since 2022, equating to approximately 17,000 lost jobs. 

Workforce Impact

Between 2009 and 2021, 2.4 million individuals were employed in the industry, with $8.2 billion in wages paid to 1.7 million California film workers. 

Statewide Job Creation

California has allocated $3.3 billion in tax incentives, but productions spent $26 billion and hired 187,000 cast and crew members. 

National and Global Competition

In a 2025 survey, 93% of studio executives ranked tax incentives as a top three cost-control measure, but ranked California only 6th in preferred production locations. 

Vendors & Local Business

The American film and television industry supports over 2 million jobs, contributes $180 billion in total wages, and encompasses 122,000 businesses nationwide. 

Tourism Impact

The California film industry has influenced 18 million trips, generating $51 billion in visitor spending and $3.4 billion in tax revenue over the past decade. 

Impact of Wildfires

Nearly 1,000 industry members lost their homes in recent California wildfires, exacerbating financial and employment instability. 

Urgency of Expansion

Governor Newsom’s 2025-2026 budget proposal to increase funding from $330 million to $750 million annually is essential to keeping California competitive and preserving thousands of middle-class jobs. 

CA Film & Television Jobs Program Impact Report

For those who want a deep dive into the issues, here is our full Legislators Packet, outlining why this program is critical for California’s economy and workforce.

Digital Packet

Copyright © 2025 Keep California Rolling - All Rights Reserved.

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