Newsom signs California’s first standalone post-production tax credit
In another push to revitalize California’s film and TV industry, Gov. Gavin Newsom on Saturday signed the state’s first standalone post-production tax incentive.
The new incentive is aimed at bringing back jobs for the industry’s editors, sound mixers, composers and visual effects artists. It will allow a 35% to 50% credit on qualified expenses related specifically to post-production work done in California, and unlike the state’s existing film and TV credit, it doesn’t require productions to shoot here.
“This legislation protects the extraordinary people who make this industry possible and makes it unmistakably clear: California is still the future of film and television,” said Gov. Newsom in a statement. “We have the talent. We have the infrastructure.”
The bill, AB 2319, was authored by Assemblymember Nick Schultz (D-Burbank) and introduced earlier this year. It cleared the state Senate 33 to 5 on Aug. 30, and the Assembly approved the final version 72 to 2 the same day. Schultz originally sought $100 million for the program. It is expected to start in January with $10 million, according to the Assemblymember Schulz’s office.
“It’s a historic moment for California’s post-production community. But it’s also just the beginning of what we really need to do to to fight for our industry,” said Marielle Abaunza, president of the California Post Alliance, a group advocating for the bill. She said the group is readying its strategy to get more funding for the program next year.
As Hollywood productions continue chase tax credits to other states and countries, much of the post-production work is going with them. California’s share of U.S. post-production employment has fallen from 53% to 42% over the last 13 years, according to CVL Economics, an economic consulting firm tied to California Post Alliance. The state had about 12,000 post-production jobs last year, per CVL Economics.
Ben Urquhart, 51, spent 18 years as a post-production executive at NBCUniversal. The Culver City resident hasn’t been able to find work in the two and a half years since he was laid off.
“It’s grim and it’s hard. There are jobs, but we have a large amount of extremely qualified people competing for every level of job,” Urquhart said. “When I was a kid, I was a [production assistant] in the 90s, and you could get a job within a couple of weeks. But when I got laid off a couple of years ago, I realized that is certainly not the case at all anymore. It’s been a large-scale transformation.”
Urquhart said the new incentive would help California compete with jurisdictions that already offer these credits and “level the playing field.”
Last year, California expanded its film and TV tax credit program, more than doubling the old $330-million cap to $750 million through June 30, 2030. The existing program already covers post-production, but only if 75% of filming or the overall budget is spent in the state.
Newsom also signed a bill that would strengthen the current tax incentive program overall. In June he revealed a state budget measure that capped how much in tax credits a business can claim each year, a limit industry groups warned would undercut the expanded program. But the new Senate Bill 186 enhances refundability for the industry and exempts independent productions from the credit limits, starting next year.
There’s also been a recent push for a federal film and TV tax incentive. President Trump has previously voiced his support for the effort, and Rep. Laura Friedman (D-Glendale) and Rep. Brian Jack (R-Ga.) are leading a bipartisan effort to draft one.