Governor Gavin Newsom is introducing a new multimillion-dollar initiative aimed at supporting Hollywood. This program is particularly focused on retaining editors, visual effects artists, and various behind-the-scenes professionals in California.
On Friday, Newsom signed Assembly Bill 2319 at the Television Academy in North Hollywood, establishing what advocates are calling a groundbreaking tax credit specifically for post-production work in California.
The initiative will provide a tax credit ranging from 35% to 50% on eligible post-production costs in California, which encompasses picture editing, sound design, music, visual effects, and final touches.
What’s noteworthy about this new program is that productions aren’t required to film in California to qualify for the credit, distinguishing it from the existing film and television incentive program.
Currently, post-production costs can only be covered if at least 75% of filming or the entire production budget occurs in California. This new credit aims to attract post-production projects to the state, even if filming is taking place elsewhere.
“This is a significant win for our efforts to sustain California’s entertainment sector, and we are just getting started,” stated Assemblyman Nick Schultz, a Democrat from Burbank and the bill’s author.
He further emphasized, “This program will genuinely protect jobs here in Los Angeles and across the state. When California succeeds, everyone benefits.”
However, the program’s budget is notably smaller than what supporters initially proposed.
Schultz originally aimed for $100 million for the post-production credit, a figure that received backing from the Motion Picture Editors Guild. Ultimately, lawmakers agreed on a budget of just $10 million, which is significantly less than what was envisioned.
This initiative comes as California faces stiff competition from other states and countries that are offering their own enticing tax incentives.
According to data from CVL Economics cited by the Los Angeles Times, California’s share of post-production jobs in the U.S. has decreased from 53% to 42% over the last 13 years, resulting in about 12,000 post-production jobs in the state last year.
This downturn has severely affected workers in Hollywood.
Ben Urquhart, 51, who lives in Culver City, shared his experience of working as a post-production executive at NBCUniversal for 18 years before being laid off. Now, two and a half years later, he is still searching for a new job.
“It’s really tough. There are openings, but we have a lot of highly qualified people vying for each position,” he expressed.
He reminisced about his early days as a production assistant in the 1990s, when securing a job typically took just a couple of weeks.
The state has recently expanded its Film and Television Tax Credit Program, increasing its budget from $330 million to $750 million annually, with funding secured through June 30, 2030.
Urquhart mentioned that this new initiative could help California remain competitive with areas already providing tax incentives for post-production work and might “level the playing field.”
This legislation aligns with Sacramento’s broader strategy to keep more Hollywood productions within California.
“California is the entertainment capital of the nation,” Newsom declared in a statement. “It hosts storytellers, dreamers, artists, entrepreneurs, and creators shaping culture globally.”
Newsom’s office stated that 170 projects announced since the incentive program’s expansion are expected to boost economic activity by over $6.6 billion and create nearly 35,000 jobs for cast and crew statewide.
Newsom’s Friday agenda included a visit to the Burbank set of HBO Max’s Emmy-winning medical drama “The Pitt,” where he was able to see firsthand the positive impact of California’s production incentives.
Additionally, Newsom signed Senate Bill 186, which modifies the existing incentive program by enhancing refundability and providing relief for specific independent productions that may face temporary restrictions on tax credits starting in 2027.
The push to attract entertainment jobs is even reaching the federal level. Former President Donald Trump has publicly endorsed the idea of a federal film tax credit, while bipartisan efforts led by Reps. Laura Friedman, D-Calif., and Brian Jack, R-Ga., are underway to draft such a proposal, according to the Times.
Concluding his Hollywood visit on Friday, Newsom emphasized the importance of retaining more film and television work in the state.
