California Legislature Sets Aside $10M for Postproduction Tax Credit Awaiting Governor's Approval
The California legislature passed AB 2319, which would provide a 35% tax credit for postproduction work on projects not filmed in the state. The bill allocates $10 million for startup costs, though the original proposal sought $100 million. The governor has until a deadline to sign.
The bill’s passage follows months of advocacy by the California Post Alliance, which framed the measure as a response to postproduction jobs migrating out of state. Supporters include major studios and labor groups, reflecting broad industry concern about retaining this work. The $10 million allocation is a fraction of the $100 million originally sought, but Assemblymember Schultz indicated he would push for more funding in January if the governor signs. The program would offer a 35% base credit for editing, VFX, sound, and scoring on projects that do not film in California or receive state production credits. Newsom has until the end of September to act.
If signed, the credit could modestly slow the outflow of postproduction jobs from California, benefiting editors, VFX artists, and sound technicians who have faced increasing competition from other states and countries. The small initial budget may limit immediate impact, but the measure signals policy intent and could encourage studios to keep some work local. Its success may depend on future funding and whether the credit proves competitive against larger incentives elsewhere.