• California proposes increasing its Film & TV Tax Credit Program to $750M annually to attract more production.
• The passage of SB630 and AB1138 faces legislative negotiations and regulatory processes, affecting the implementation timeline.
• Implementation could take nine months to over a year, with potential for retroactive credit eligibility being considered.

California is on the verge of revamping its Film & TV Tax Credit Program, aiming to revitalize the state's production pipeline. Governor Gavin Newsom proposed a significant increase to the overall cap on incentives, more than doubling it from $330 million to $750 million annually. Senate Bill 630 and Assembly Bill 1138 seek to amend, update, and modernize the program to make California more accommodating to production. The eventual passage of these bills is viewed positively, but the timing of when Californians can expect to see the benefits is uncertain.

• What: Proposed expansion of California's Film & TV Tax Credit Program, increasing the annual incentive cap from $330 million to $750 million and updating program provisions.
• Who: Gov. Gavin Newsom, state Sen. Ben Allen, Assembly members Rick Chavez Zbur and Isaac Bryan, California Film Commission, studios, and production workers.
• When: The bills were introduced on February 20. The application window for Program 4.0 begins in mid-June. Potential implementation ranges from July 1 to between September and January, followed by a 6-month to 1-year regulatory process.
• Where: California, specifically Los Angeles and other areas of economic opportunity within the state.

The proposed expansion of California's Film & TV Tax Credit Program is a significant step towards revitalizing the state's production industry. The increase in funding and updates to the program are intended to make California more competitive with other states and territories that offer more attractive incentives. However, the actual impact and timeline for implementation are uncertain due to the legislative process, budget revisions, and regulatory requirements. The inclusion of post-production and commercials as eligible projects could further enhance the program's effectiveness but face potential delays.

everybody feels a sense of urgency to solve this issue within the state

Is anyone going to apply if they wait three months longer and get 35% [credit]?

nothing is guaranteed

The future of California's Film & TV Tax Credit Program hinges on the successful passage of SB630 and AB1138 and the subsequent regulatory processes. While the proposed expansion offers hope for a revitalized production industry, the timeline remains uncertain, potentially delaying the benefits for production workers. The program's effectiveness will depend on addressing key omissions like post-production and commercials, and streamlining the application and review processes.