California’s Tax Credit Bill: A Boost for the Film Industry or a Missed Opportunity?
The California state legislature is considering a significant increase in the tax credits allocated for film and television production, potentially more than doubling existing funds from $330 million to $750 million. This initiative seeks to revitalize the local entertainment sector, particularly as jobs evaporate to other states and countries due to competitive tax incentives.
Challenges in Post-Production
However, for many professionals in post-production—encompassing sound editing, music scoring, and visual effects—the proposed measures may fall short. During a recent town hall event held in Burbank, industry stakeholders gathered to discuss the urgent need for both legislative support and additional incentives tailored specifically for post-production.
Voices from the Industry
Industry leaders voiced their concerns over the current state of post-production jobs in California. Oscar-winning sound editor Karen Baker Landers highlighted the migration of crucial post-production tasks out of California in pursuit of better tax incentives elsewhere. “Visual effects, sound, picture, music, have been migrating out of California… This has cost the state thousands of jobs,” she stated, stressing the importance of a dedicated post-production incentive within the proposed legislation.
Proposed Legislative Changes
The proposed tax credit reforms—SB 630 and AB 1138—aim to make California a more attractive destination for filmmakers by increasing the base tax credit from 20 percent to 35 percent and broadening the criteria for eligible productions. The new framework would benefit indie films, animated projects, documentaries, and series that are returning for multiple seasons. Notably, the reforms also aim to lift the current $100 million budget cap on qualifying projects.
California State Senator Ben Allen and Assemblyman Rick Zbur, the sponsors of the proposed bills, affirmed their commitment to changing these dynamics. “The studios don’t care where they do the work… This is a middle class, working class problem,” Allen remarked, underscoring the stakes involved for local employment.
The Need for Additional Incentives
Despite the promising aspects of the bills, both Allen and Zbur did not address the potential for an added post-production carve-out, which advocates argue is essential for keeping the finishing processes of productions within California. There are calls for the state to take additional steps, such as eliminating budget caps altogether, which would align California more closely with states like Georgia, which have successfully captured a larger share of film and TV production.
Current Industry Trends
Recent data from FilmLA highlights a continued decline in on-location production in Greater Los Angeles, noting a 22.4 percent decrease from January to March 2025 compared to the previous year. This trend could be worsened if the industry does not take strategic measures to adapt.
A Call to Action
Panelists at the town hall, including Recording Academy CEO Harvey Mason Jr. and grassroots campaign leaders, voiced their concern for the future of California’s film and television industry. “This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,” warned Noelle Stehman, emphasizing that inaction could lead to a serious downturn for local labor markets.
As the state approaches a critical legislative session, stakeholders are urged to pressure their representatives to not only support the tax credit increase but also to incorporate provisions that safeguard and promote post-production jobs in California.