Bill > AB1138

This bill makes significant changes to California's motion picture tax credit program, expanding and modifying existing tax incentives for film and television productions. The bill increases the aggregate amount of tax credits that can be allocated annually from $330 million to $750 million, starting in the 2025-26 fiscal year. It raises the credit percentage for qualified motion picture expenditures from 20-25% to 35-40%, depending on the type of production. The bill broadens the definition of qualified motion pictures to include live-action and animated series with episodes averaging at least 20 minutes, animated films, and large-scale competition shows. It introduces more comprehensive diversity requirements, mandating that productions submit diversity workplans that reflect California's population, including considerations of race, ethnicity, gender, disability status, and veteran status. The bill also expands the Career Pathways Program, which provides technical skills training for individuals from underserved communities, by increasing the number of nonprofit organizations involved and developing criteria to incentivize the placement of program trainees in productions. Additionally, the bill allows for a refundable tax credit, meaning productions can receive up to 90% of their tax credit amount as a cash refund if their tax liability is lower than the credit. The changes are designed to keep California competitive with other states' film production incentives and support job creation and diversity in the entertainment industry.

Budget and Finance, Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1138