California is making a landmark investment in its film and television industry by significantly expanding the state's Film & TV Tax Credit Program. This initiative aims to retain productions within the state and generate thousands of new jobs, reinforcing California's position as a leading global production hub.
The expansion comes through Assembly Bill 132, which has secured $750 million per year for five years. This bill was overwhelmingly approved by the California Senate and Assembly, and signed by Governor Newsom, with the funding increase taking effect on July 1, 2025. The annual cap for the program has more than doubled, rising from $330 million to $750 million, making California one of the most generous states for capped film incentives.
Effective July 1, 2025, assuming AB 1138 is passed, the following changes will be implemented:
The expansion of California's Film & TV Tax Credit Program presents both opportunities and complexities for filming companies. While the increased funding and incentives can significantly reduce production costs, navigating the new eligibility criteria and reporting requirements may pose challenges. Companies will need to strategically plan their productions to maximize benefits from the enhanced credit rates and expanded eligibility.
RKL and Sage Intacct can provide invaluable support to filming companies as they navigate these complexities. With expertise in financial management and accounting solutions, they can help companies optimize their tax credit utilization, ensure compliance with reporting requirements, and manage the financial intricacies of production planning.
Learn more about financial software for film distributors and producers here and why RKL is a leading entertainment software partner.