California Launches $10M Post-Production Tax Credit to Retain Hollywood Jobs
Governor Gavin Newsom signed Assembly Bill 2319, establishing California’s first standalone tax credit for post-production work. The measure offers a 35% to 50% credit on qualified expenses for editing, sound, and visual effects, regardless of where filming occurs. Funded with an initial $10 million, the program aims to reverse the decline in California’s post-production employment share, which has dropped from 53% to 42% over 13 years. Newsom also signed Senate Bill 186 to improve refundability and exempt independent films from corporate tax credit caps. While supporters view this as a critical step to compete with other states and countries, critics note the funding is one-tenth of the $100 million originally proposed by the bill’s author.
