California Governor Gavin Newsom signed legislation on Saturday establishing the state’s first standalone post-production tax credit, a move aimed at revitalizing jobs for editors, sound mixers, composers, and visual effects artists in the film and television industry. The new incentive offers a 35% to 50% tax credit on qualified post-production expenses incurred within California, and unlike the existing film and TV tax credit program, it does not require productions to shoot in the state.
The tax credit, enacted under Assembly Bill 2319, was authored by Assemblymember Nick Schultz (D-Burbank) and is slated to begin in January. The program will initially be funded at $10 million annually, a fraction of the $100 million Schultz originally sought. The bill received strong bipartisan support, passing the state Senate 33-5 and the Assembly 72-2 on August 30.
“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,” Newsom said in a statement. “We have the talent. We have the infrastructure.”
California’s film and television industry has faced increasing competition from other states and countries offering lucrative tax incentives, leading to a decline in local post-production work. According to CVL Economics, a consulting firm affiliated with the California Post Alliance, California’s share of U.S. post-production employment dropped from 53% to 42% over the past 13 years. The state had approximately 12,000 post-production jobs last year.
Industry advocates view the new tax credit as a critical first step to reversing the trend. Marielle Abaunza, president of the California Post Alliance, called the legislation “a historic moment” but emphasized that additional funding and support would be necessary for sustained growth in the sector.
For individuals such as Ben Urquhart, a former post-production executive at NBCUniversal based in Culver City, the credit holds promise. Urquhart, who has struggled to find work in the past two and a half years since his layoff, highlighted the increasing competition for jobs amid the industry’s ongoing transformation. He said the new incentive could help California better compete with jurisdictions already offering tailored tax credits.
The legislation complements last year’s expansion of California’s broader film and television tax credit program, which more than doubled the funding cap from $330 million to $750 million through mid-2030. However, the existing program’s post-production component is limited to projects that shoot at least 75% of production or spend a significant portion of their budget in the state.
In addition to AB 2319, Newsom approved Senate Bill 186, which modifies the current tax credit structure by accelerating cash refund payouts and allowing unused tax credits to be refundable at higher amounts. The bill also removes the cap on tax credit claims for independent productions. Some critics have warned that these changes could reduce the overall effectiveness of California’s film incentive programs.
At the federal level, momentum is growing for a national film and television tax credit. Former President Donald Trump expressed support for such an incentive, while Representatives Laura Friedman (D-Glendale) and Brian Jack (R-Georgia) are leading a bipartisan effort to develop a federal film tax credit proposal.