ALERT TO CALIFORNIA PRODUCERS: Major Film & TV Tax Credit Expansion & Key Dates
California has significantly expanded its Film & TV Tax Credit Program to boost local production and jobs.
Application Windows (Under New CA 4.0 Program):
- Television Series (New, Relocating, Pilot, Limited, Recurring): July 7 – 9, 2025
- Independent & Non-Independent Feature Films: August 25 – 27, 2025
AB 132 (Funding)
- Approved & Signed: Assembly Bill 132 was signed by Governor Newsom on Friday, June 27th, and takes effect July 1, 2025.
- Funding: Annual cap increased from $330 million to $750 million for five years. This makes CA one of the most generous states for capped film incentives.
AB 1138 (Program Changes)
- Expected Passage: This companion bill, expected to pass and take effect before July 4th, introduces significant improvements. While not signed as of today, July 2nd, reports indicate it's imminent.
Key Program Changes (Effective July 1, 2025, with AB 1138 passage):
- Enhanced Credit Rates: Base credit jumps from 20% to 35%. An additional 5% uplift (total 40%) for filming outside Los Angeles County.
- Expanded Eligibility (California Spend $1M+):
* Animated series/films
* Multi-camera sitcoms (animated, scripted, large-scale competition shows <30 min)
* Large-scale competition shows
* TV shows with episodes <30 minutes
Exclusions still apply for reality, documentary, game/talk shows, and above-the-line labor.
Workforce & Equity:
- 2% Bonus for Trainees: Additional credit for hiring 1-4 trainees from targeted programs serving underserved communities (in addition to union crew).
- Expanded Reporting: Productions must report ZIP codes and veteran status, in addition to race, ethnicity, and gender, for workforce inclusion.
California Tax Credit Refundability (Major Change July 1, 2025):
- All qualified applicants can elect refundability.
- Electing refundability means receiving 90% of the credit paid over five years, regardless of tax liability.
- Non-refundable option still requires CA income/sales tax liability or independent producer transfer option.
This significant investment is expected to support 40-50% more jobs, translating to roughly 4,400 to 5,500 new industry jobs, reclaiming California's position as a leading production hub.
Entertainment Partners
California Film Commission
FilmLA
California Production Coalition
#StayinLA
#StayinCA
