Bill to Extend Film & TV Tax Credit Passes Assembly Revenue & Taxation Committee
For Immediate Release: June 30, 2022
Contact: Lerna Shirinian, (818) 409-0400
Bill to Extend Film & TV Tax Credit Passes Assembly Revenue & Taxation Committee
Sacramento, California – Senate Bill 485, a measure authored by Senator Anthony J. Portantino (D – La Canada Flintridge) that extends the sunset date for the film and television production tax credit program for five years, passed the Assembly Revenue and Taxation Committee today.
“As we continue to update and improve the current tax credit program, our goal is to remain competitive with other states and continue to create generations of entertainment careers and good paying middle class jobs for decades to come,” stated Senator Portantino. “The extension of the film and television tax credits, along with investment in new sound stages, are long term investments that will sustain job creation and bring renewed economic benefits for California.”
Last year, Senator Portantino introduced SB 485 to ensure California remains a global leader in entertainment production by investing in the expansion and modernization of studio infrastructure. The investments proposed in SB 485 were incorporated into SB 144 (authored by Senator Portantino and signed by Governor Newsom in July) and included a $180 million increase to the current film and television tax incentive program and $150 million for a new incentive tied to the construction of soundstages.
Since inception, California’s film tax credit programs have generated $17.9 billion in production spending for the state. SB 144 expanded the credit allocation available under the Film and Television Tax Credit 3.0, establishing a new credit for qualified motion pictures produced on a certified studio construction project, and increased the credit percentage when specified diversity goals are met. SB 144 was part of a three-party budget agreement between the Governor, the State Senate and the State Assembly. The measure was co-authored by Senator Stern, Assemblymember Autumn Burke, Chair of the Assembly Revenue and Taxation Committee, and Assemblymember Wendy Carrillo.
SB 485 continue these efforts by extending the Film and Television Tax Credit 3.0, which authorizes the California Film Commission (CFC) to allocate the motion picture and television production tax credits from July 1, 2025 to July 1, 2030. It would extend the current authorization for motion picture and television production tax credits in the aggregate amount of $330 million annually from fiscal year 2024-25 to fiscal year 2029-30. Finally, SB 485 changes the fiscal year of credit authorization from 2024-25 to 2029-30, from which the CFC would draw when adjusting for a shortfall funding all recurring television.
The State Building and Construction Trades Council and California Labor Federation/AFL-CIO are sponsors of SB 485. It is also supported by the California Chamber of Commerce, Teamsters Local 399, LiUNA Local 724, Directors Guild of America and California IATSE Council. Senator Henry Stern, Senator Scott Wilk, and Assemblymember Wendy Carrillo are principal co-authors of SB 485 and Assemblymember Carlos Villapudua, Assemblymember Tasha Boerner Horvath, and Senator Maria Elena Durazo are co-authors.
Senator Portantino has a long record of supporting California’s vital entertainment industry and its crafts and guilds. He proudly represents the 25th State Senate District, which includes the cities of Burbank, Glendale and Pasadena and is home to important film locations and historic studios. Senator Portantino serves as the Chair of the Senate Committee on Appropriations.
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