CA Post Production Tax Incentive Bill Passes Senate; Moves To Newsom's Desk
Deadline • • entertainment
Key Points:
- The California State Senate passed SB 2319, creating a new tax incentive for the post-production industry, including VFX, scoring, and mixing, but the bill lacks allocated funding and now awaits Governor Gavin Newsom’s approval.
- Initial projections for the post-production credit were up to $100 million, but the first-year allocation is now expected to be around $35 million, highlighting budgetary constraints amid a strict zero-deficit state budget.
- Despite strong advocacy from Hollywood and industry groups like the Motion Picture Editor’s Guild, the state’s budget does not currently have funds earmarked for this new credit, requiring creative financial solutions if Newsom signs the bill.
- Separately, lawmakers introduced AB136 to provide studios with exemptions from recent corporate tax credit restrictions, aiming to protect the expansion of California’s Film & TV Tax Credit pool to $750 million, with a vote anticipated before the legislative session ends.
