Gov. Gavin Newsom Signs CA Postproduction Tax Credit Into Law

California Governor Gavin Newsom signed a bill that establishes a new tax credit for post-production work in the state, according to the governor’s office. The legislation, known as AB 2319, offers a 35% to 50% tax credit for qualifying expenses tied to editing, sound, music, visual effects, finishing, and other post-production processes completed in California.

Assemblymember Nick Schultz (D-Burbank) sponsored the bill, which does not necessitate that productions be filmed in California to be eligible for the incentive. Existing California film and television tax credit programs had already covered post-production work, but only if 75% of filming or overall spending took place in the state.

The budget associated with AB 2319 includes $10 million in startup funds for the program, whereas the initial proposal sought a $100 million allocation. Assemblymember Schultz indicated that the assembly would aim to increase funding in the upcoming budget. Other film and television initiatives in New York, New Jersey, Georgia, and New Mexico already provide tax incentives for post-production work.

Similar incentives also exist abroad, which have previously attracted work away from Hollywood. Alongside AB 2319, Newsom also signed Bill 186, which will come into effect in 2027. This amendment will enhance refundability for credits and exempt certain independent productions from temporary credit. In his statement, Newsom emphasized, "California is the nation’s entertainment capital...

This legislation protects the extraordinary people who make this industry possible and makes it unmistakably clear: California is still the future of film and television." The Editors Guild’s national executive director, Scott George, hailed the legislation as “a historic day” for the guild and California’s film and television workforce.

He highlighted that AB 186 ensures the continuation of the California Film and TV Tax Credit Program, while AB 2319 complements it by allowing projects filmed outside the state to return to California for post-production work. Marielle Abaunza, president of the California Post Alliance, expressed gratitude to Newsom, Assemblymember Schultz, and other legislators for acknowledging the significance of entertainment industry workers to the state’s economy.

She praised the bill’s impact on the post-production workforce and credited the support from various groups and partners for its successful passage. Both tax credit program expansions followed California’s decision to increase its production incentive program from $330 million to $750 million, which has attracted 170 projects to the state, generating $6.6 billion in economic activity and creating nearly 35,000 jobs for cast and crew.