WeVote
Log In

Bill

Bill

AB 1138

Income and corporate taxes: tax credits: motion pictures.

2025-2026 Regular Session Introduced by Patrick Ahrens and 24 co-sponsors

California expands motion picture tax credits to incentivize film and TV productions to shoot in-state, taking immediate effect to compete with other states' production incentives.

Chaptered by Secretary of State - Chapter 27, Statutes of 2025.
#incomeandcorporatetaxes #motionpictures #taxcredits
0
WeVote Research Nonpartisan
Bill Summary · AB 1138

Legislative bill overview

AB 1138 expands and modifies California's motion picture tax credit program, which provides financial incentives to film and television productions that shoot in the state. The bill was passed with an urgency clause, meaning it takes effect immediately upon the Governor's signature rather than on January 1st of the following year.

Why is this important

California's film industry generates billions in economic activity and employment, but has faced increasing competition from other states and countries offering aggressive production incentives. This bill directly affects whether major productions choose to film in California versus relocating to states like Georgia, Louisiana, or New Mexico, which has real consequences for jobs, local spending, and the state's cultural economy.

Potential points of contention

  • Cost to state budget: Expanded tax credits reduce state revenues; critics argue this represents corporate subsidies while the state faces budget pressures, while supporters counter that productions generate tax revenue and jobs that offset the credit costs
  • Effectiveness and accountability: Questions about whether tax credits actually change production decisions or simply reward projects that would film in California anyway, and whether there's adequate tracking of promised versus actual job creation
  • Equity concerns: Film industry jobs tend to be concentrated in specific regions and require specialized skills, raising questions about whether these incentives benefit broader California communities or primarily entertainment industry workers and companies

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.