AB/SB 186 will mitigate the impact of SB 122 to maintain a competitive

Film & Television Tax Credit Program in California

SACRAMENTO – Senator Ben Allen (D-Santa Monica) and Assemblymember Rick Chavez Zbur (D-Hollywood) celebrated the introduction of AB/SB 186 today, a budget trailer bill that protects California’s commitment to the middle-class jobs that support film and television production in the state.

“Last year, we took action to get families back to work and jumpstart the State’s film and television industry,” said Senator Allen. “However, we’re at risk of losing this momentum, and all the jobs we’ve created over the last year, if we don’t act by the end of the month. I’m grateful for the support from Governor Newsom, Assemblymember Zbur, and the legislative leadership to help us find a path forward that will retain California’s status as the global hub of entertainment.”

“I’m pleased that we have identified a path forward that would help protect the progress we’ve made to strengthen California’s film and television industry,” said Assemblymember Zbur. “This has been an important priority for me and many of my colleagues, and I appreciate the work of the Governor,  legislative leadership, and Sen. Ben Allen to address our concerns. We are already seeing the benefits of the modernized and expanded Film and Television Jobs Program we enacted last year, with 170 projects choosing California and nearly 35,000 cast and crew jobs supported in its first year. AB/SB 186 would provide greater stability and certainty for productions and workers, mitigate the impacts of the business tax credit limitation, and help us continue competing for jobs and investment. It does not address every challenge facing this highly competitive and mobile industry, and there is more work to do in the coming months, but this is an important step toward ensuring film and television remain a cornerstone of California’s economy.”

Last year, Governor Newsom signed the California Film & Television Jobs Act, authored by Assemblymember Zbur and Senator Allen, to modernize the Film and TV Tax Credit Program and rein in the “runaway production” that had put many families out of work. The Act, which received strong bipartisan support, increased the annual cap to $750 million, raised the credit amount, expanded project eligibility, and otherwise increased flexibility to utilize the Program.

The first year of the revitalized program (July 1, 2025 – June 30, 2026) has proven successful. 170 new film and TV projects have been awarded credits to film in California, bringing an estimated $6.6 billion in economic activity and creating almost 35,000 cast and crew jobs across the state. Despite this, our effort to rescue one of California’s strongest economic engines was unintentionally put at risk by SB 122 that was enacted in June to ensure corporations pay their fair share of state taxes. The budget bill imposes an additional tax credit cap on an already capped and allocated Film & TV Program. Such changes undermines our commitment to these jobs made last year and the financial support promised to many projects already underway.

To mitigate the impacts of SB 122 on working families, the legislature introduced AB/SB 186 today to make necessary changes to the Film & TV Program. The proposal:

• Exempts independent productions from the caps instituted by SB 122.
• Lowers the discount on refunds in the 4.0 Program from 10% to 5% and provides a payout over two years, rather than five.
• Protects unused credits earned in the earlier 2.0 and 3.0 programs from premature expiration if the company has a project awarded under the 4.0 Program.

Without these changes, the recovery we’re currently witnessing for this historic California industry will be undermined, and more jobs will be lost to continued runaway production.