Overview
- The state budget signed June 29 included Senate Bill 122, a provision that limits how much tax credit any single company can claim in a year to about $5 million.
- That cap does not change awards already granted but would force large productions to claim credits over many years and would cut the near‑term cash value of big credits for studios and financiers.
- The California Film Commission reported the expanded program delivered about $6.6 billion in production spending and nearly 35,000 cast-and-crew jobs in its first year, figures lawmakers say are at risk if credits are limited.
- More than 40 bipartisan legislators sent a mid-July letter urging Gov. Gavin Newsom to exempt or fix the film-and-TV credit quickly, and industry groups have warned the cap creates monetization uncertainty for productions.
- The governor’s office says the cap is a fiscal tool and will work with partners but has not pledged an immediate carve-out, leaving a race to secure a legislative or administrative fix before the session ends in late August.