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11h ago

Newsom Signs California’s First Standalone Post‑Production Tax Credit

The measure is meant to lure post‑production work back to California by offering 35–50% credits for in‑state post work while steering subsidies toward union‑level jobs.

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An image collage containing 3 images, Image 1 shows California Gov. Gavin Newsom speaking at a rally with a microphone in one hand and the other hand raised, with an American flag in the background, Image 2 shows Governor Gavin Newsom signing Assembly Bill 2319 at the Television Academy in Hollywood, Image 3 shows The Hollywood Sign on a distant hill, framed by two rows of palm trees
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Overview

  • Governor Gavin Newsom signed AB 2319 and SB 186 on Saturday, Sept. 19, 2026, creating a new standalone post‑production tax credit and modifying the state’s Film & TV Tax Credit program.
  • AB 2319 offers a 35% to 50% tax credit for qualified post‑production expenses performed in California, does not require projects to have filmed in the state, and takes effect Jan. 1 with an initial $10 million allocation.
  • Lawmakers amended the post‑production credit to prioritize labor standards by directing roughly 85% of funding to jobs that meet union‑level wages and benefits to avoid subsidizing non‑union VFX work.
  • SB 186 strengthens the broader credit program by improving refundability, exempting certain independent productions from temporary credit caps, and changing how credits are monetized with provisions that phase in starting in 2027.
  • Supporters called the $10 million start a down payment after they sought $100 million, and advocates say the move is meant to help California regain post‑production market share lost to other U.S. states and foreign hubs while implementation and future funding remain the next battlegrounds.