California Expands Tax Credits for Film and Television

Governor Gavin Newsom signed into law AB 1138, which more than doubles the amount of money available for the state’s film and television tax credit program from $330 million to $750 million. The law is effective for tax years beginning on or after January 1, 2025.

California established the California Motion Picture and Television Tax Credit Program 4.0 in 2023. AB 1138 expands the program to cover live action and animated series with episodes averaging 20 minutes or more, animated films, and large-scale competition shows.

It also increases the credit amount allowed for a qualified motion picture to 35% of qualified expenditures for productions filmed in greater Los Angeles and 40% of qualified expenditures for productions filmed outside of greater Los Angeles.

The tax credit was originally for up to 20% or 25% of qualified expenses for live-action films and scripted television shows.

In May, Newsom discussed working with President Trump to create a $7.5 billion federal film and television tax incentive. “We’d like to see [Trump] match the ambition that we’re advancing here today in California with the ambition to keep filmmaking all across the United States, here in the United States,” Newsom said. “I am hopeful that we, in the hands of partnership, continue to work with the administration.”