Newsom Signs New Tax Credit to Retain California Film and TV Post-Production Jobs

Gov. Gavin Newsom has signed legislation establishing a new tax credit aimed at retaining film and television post-production jobs within California. Assembly Bill 2319, signed Friday at the Television Academy in North Hollywood, creates a credit specifically for post-production services, a move supporters say is crucial for the state's entertainment industry.

The program will provide a 35% to 50% credit on qualified California post-production expenses, encompassing services such as picture editing, sound design, music scoring, visual effects, and finishing. A key distinction from California's existing film and television incentive program is that productions will not necessarily be required to film in the state to qualify for these post-production credits. Under the current program, post-production costs are typically covered only if at least 75% of filming or the production's overall budget is spent in California. The new credit is designed to attract post-production activities even when filming occurs elsewhere.

Assemblyman Nick Schultz, a Burbank Democrat and the bill's author, hailed the legislation as a significant victory for the industry. "This program will literally save jobs here in Los Angeles and across the state," Schultz stated. "When California competes, we all win."

However, the initial allocation for the new program falls short of earlier proposals. Schultz had initially sought $100 million for the post-production credit, an amount supported by the Motion Picture Editors Guild. Lawmakers ultimately approved $10 million for the initiative.

The introduction of this incentive comes as California faces increasing competition from other states and countries offering their own tax breaks for the entertainment industry. Data cited by the Los Angeles Times from CVL Economics indicates that California's share of U.S. post-production employment has declined from 53% to 42% over the past 13 years. The state reportedly had approximately 12,000 post-production jobs last year, according to the same firm.

For industry professionals, the job market has become increasingly challenging. Ben Urquhart, a former post-production executive who was laid off from NBCUniversal, told the Times that despite 18 years in the industry, he has struggled to find new employment for over two and a half years. He described the situation as "grim and hard," with a large number of qualified individuals competing for available positions.

California has recently bolstered its overall film and television tax credit program, increasing its annual allocation from $330 million to $750 million, with the expanded funding authorized through June 30, 2030. Urquhart suggested that the new post-production incentive could help California compete more effectively with other locations that already offer such credits, potentially leveling the playing field.

In addition to the new post-production credit, Newsom also signed Senate Bill 186. This bill modifies the existing incentive program by enhancing refundability and providing relief for certain independent productions facing a temporary limitation on tax credits beginning in 2027.

Newsom's office reported that 170 projects announced since the expansion of the incentive program are projected to generate over $6.6 billion in economic activity and create nearly 35,000 cast and crew jobs statewide. The governor also visited the set of HBO Max's drama "The Pitt" in Burbank as part of his efforts to keep entertainment production within the state.

The push to attract and retain entertainment jobs is also gaining attention at the federal level. Representatives Laura Friedman (D-Calif.) and Brian Jack (R-Ga.) are reportedly leading a bipartisan effort to draft a federal film tax credit, with President Donald Trump having previously expressed support for such an initiative.