California Senate Passes Film and TV Tax Credit Expansion Bill SB630 with Overwhelming Support
ICARO Media Group
The California Senate has cast its vote on Senate Bill 630, a significant piece of legislation designed to enhance and broaden the state's Film and Television Tax Credit Program. The bill was overwhelmingly approved with a 34-1 vote, the only opposition coming from Sen. Roger Niello of Sacramento. The legislation now moves to the state Assembly, which is set to vote on Thursday.
Senate Bill 630, along with Assembly Bill 1138, aims to redefine what constitutes a qualified motion picture, an adjustment that would open the door for a wider array of projects to benefit from the tax credit program. Specifically, the bills will allow for series with episodes averaging 20 minutes or more, as well as animation films, series, shorts, and large-scale competition shows to qualify.
The legislative journey for both bills faced hurdles in the Senate and Assembly Appropriations Committees, where references to increasing the funding for the program were removed. Initially, the bills included Governor Gavin Newsom's proposal to boost the annual cap on incentives from $330 million to $750 million. Although this specific funding increase has been excluded from the current versions of the bills, Governor Newsom continues to advocate for it in his upcoming budget, scheduled for a vote on June 15.
While the removal of the $750 million expansion was not unexpected, according to sources, the focus on securing increased funding remains a priority for Newsom. Moreover, SB630 and AB1138 aim to do more than just increase financial incentives. They propose raising the available credit amount for individual projects from 20% to 35% for expenses incurred in Los Angeles, and grant the California Film Commission the ability to enhance credit percentages by 5% in other economically needy areas.
This legislative push comes at a time of heightened competition, as other states like New York have recently expanded their film and television tax incentive programs. The urgency is further underscored by President Donald Trump's announcement of planned tariffs on movies produced outside the United States, a move that has drawn significant criticism from the industry and Governor Newsom, who argues that Trump lacks the authority to impose such tariffs.
The Senate's decisive vote on SB630 marks the latest effort to counteract the trend of runaway production, keeping California competitive in the increasingly aggressive landscape of film and television production incentives.