Gov. Newsom signs bill creating new post‑production tax credit

California Governor Gavin Newsom signed legislation on Saturday that establishes a dedicated tax credit for post‑production work, a move aimed at keeping more film‑related jobs in the state.

Industry hopes for a boost

Ben Urquhart, a post‑production executive and member of the California Post Alliance, described the new credit as “a glimmer of hope” for the community of creators who have faced increasing competition from other states offering more attractive incentives.

What the credit offers

The new program, created by Assembly Bill 2319, will provide a credit ranging from 35% to 50% of eligible post‑production expenses. Importantly, the credit applies even when the principal photography occurs outside California, allowing projects set abroad to still benefit from the state’s incentive.

Legislative background

Assemblymember Nick Schultz, the bill’s author, emphasized that the goal is to restore California’s competitiveness and preserve local jobs. While the initial proposal called for a $100 million fund, the final version settled on a $10 million allocation.

Additional tax measures

Alongside AB 2319, Newsom also signed Senate Bill 186, which lifts the $5 million cap on the corporate tax credit for independent films, extends the lifespan of older non‑refundable credits from nine to fifteen years, and speeds up repayment for productions that earn refundable credits.

Political and community response

Los Angeles leaders, including Mayor Karen Bass and mayoral candidate Nithya Raman, praised the legislation. Bass highlighted her long‑standing advocacy for the entertainment sector, while Raman stressed the urgency of protecting Hollywood jobs.

Governor’s statement

Newsom called California “the nation’s entertainment capital” and said the new laws safeguard the people who drive the industry, reaffirming the state’s role as a global hub for film and television.

Looking ahead

Stakeholders acknowledge that the $10 million budget is modest, but they view the credit as a stepping stone toward larger incentives. Urquhart noted that the industry will continue to push for additional funding, citing economic data that underscores the sector’s importance to California’s economy.