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    AB-1138
    Budget & Economy

    Income and corporate taxes: tax credits: motion pictures.

    Passed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Increases California's film tax credit program from $330 million to $750 million annually through 2030.
    • Raises tax credit rates from 20-25% to 35-40% of qualified production expenses starting January 2025.
    • Expands eligibility to include animated series, films and competition shows with $1 million minimum budgets.
    • Requires productions to meet diversity goals and hire trainees from underserved communities to receive full credits.

    Summary

    Assemblymember Zbur's comprehensive film and television tax credit legislation significantly expands California's motion picture incentive programs while strengthening diversity and workforce development requirements. The measure increases the annual tax credit allocation from $330 million to $750 million and raises credit rates from 20-25% to 35-40% of qualified expenditures.

    The legislation broadens eligibility to include animated series, films, and large-scale competition shows while eliminating certain ownership restrictions for studio facilities. Productions must now incorporate veteran status and ZIP code data in their diversity plans and assessments. The bill also expands the Career Pathways Training Program, requiring the California Film Commission to partner with more nonprofit organizations to provide technical skills training for individuals from underserved communities.

    Single-member limited liability companies that are disregarded for tax purposes may now assign portions of their credits to affiliated corporations, similar to multi-member entities. The Commission will develop criteria to incentivize productions to employ program trainees, though trainee wages will not count toward qualified expenditure calculations.

    To ensure accountability, qualified taxpayers must submit detailed reports on expenditures, diversity metrics, and workforce training compliance. The Commission will audit submissions and may disallow credits for non-compliance. Productions receiving credits must pay fees to support the training program, with the Commission authorized to increase fees based on industry needs and program outcomes.

    The legislation maintains strict timelines for credit allocation and certification while requiring the Commission to evaluate diversity plans and expand workforce development partnerships. These changes aim to strengthen California's position in the entertainment industry while advancing inclusion and economic opportunity.

    Taking effect immediately as an urgency measure, the bill includes provisions ensuring that if any section is found invalid, the remaining portions stay in force. The Commission must report annually to the Legislature on diversity outcomes and Career Pathways Program impacts.

    Key Dates

    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1138 ZBUR Concurrence - Urgency Added
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Assembly 3rd Reading AB1138 Zbur et al. By Allen Urgency Clause
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1138 Zbur Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Revenue And Taxation Hearing
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Arts, Entertainment, Sports, And Tourism Hearing
    Assembly Committee
    Assembly Arts, Entertainment, Sports, And Tourism Hearing
    Do pass and be re-referred to the Committee on [Revenue and Taxation]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Contacts

    Profile
    Al MuratsuchiD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Sharon Quirk-SilvaD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Benjamin AllenD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 27 row(s) selected.
    Page 1 of 6
    Select All Legislators
    Profile
    Al MuratsuchiD
    Assemblymember
    Bill Author
    Profile
    Sharon Quirk-SilvaD
    Assemblymember
    Bill Author
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Profile
    Benjamin AllenD
    Senator
    Bill Author
    Profile
    Henry SternD
    Senator
    Bill Author
    Profile
    Susan RubioD
    Senator
    Bill Author
    Profile
    Josh BeckerD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Mike FongD
    Assemblymember
    Bill Author
    Profile
    Tina McKinnorD
    Assemblymember
    Bill Author
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author
    Profile
    Rick ZburD
    Assemblymember
    Bill Author
    Profile
    Caroline MenjivarD
    Senator
    Bill Author
    Profile
    Patrick AhrensD
    Assemblymember
    Bill Author
    Profile
    Jessica CalozaD
    Assemblymember
    Bill Author
    Profile
    Anamarie FariasD
    Assemblymember
    Bill Author
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Celeste RodriguezD
    Assemblymember
    Bill Author
    Profile
    Michelle RodriguezD
    Assemblymember
    Bill Author
    Profile
    Nick SchultzD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Suzette ValladaresR
    Senator
    Bill Author
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    SB-756
    Corporation Tax Law: credit: motion picture.
    February 2025
    Engrossed
    View Bill
    AB-1377
    Income taxes: credits: motion picture credit.
    February 2025
    Engrossed
    View Bill
    SB-630
    Income and corporate taxes: tax credits: motion pictures.
    February 2025
    Engrossed
    View Bill
    SB-132
    Income taxes: tax credits: motion pictures: occupational safety: California Film Commission.
    January 2023
    Passed
    View Bill
    Income taxes: credits: motion pictures.
    February 2021
    Failed
    View Bill
    Personal income tax and corporation tax: Equitable Opportunities Film Credit.
    February 2021
    Failed
    View Bill
    Income taxes: tax credits: motion picture credit: extension: diversity workplan.
    February 2021
    Failed
    View Bill
    Taxes: credits: qualified motion pictures: certified studio construction projects: reports.
    January 2021
    Passed
    View Bill
    Income taxes: credits: motion pictures.
    February 2018
    Failed
    View Bill
    Taxes: credits: motion pictures: Legislative Analyst’s Office report.
    January 2018
    Failed
    View Bill
    Showing 10 of 27 items
    Page 1 of 3

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Rick Zbur
    Rick ZburD
    California State Assembly Member
    Sharon Quirk-Silva
    Sharon Quirk-SilvaD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    Co-Authors
    Josh Becker
    Josh BeckerD
    California State Senator
    Caroline Menjivar
    Caroline MenjivarD
    California State Senator
    Benjamin Allen
    Benjamin AllenD
    California State Senator
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator
    Henry Stern
    Henry SternD
    California State Senator
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Tom Lackey
    Tom LackeyR
    California State Assembly Member
    Mark Gonzalez
    Mark GonzalezD
    California State Assembly Member
    Tina McKinnor
    Tina McKinnorD
    California State Assembly Member
    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Susan Rubio
    Susan RubioD
    California State Senator
    Nick Schultz
    Nick SchultzD
    California State Assembly Member
    Suzette Valladares
    Suzette ValladaresR
    California State Senator
    Anamarie Farias
    Anamarie FariasD
    California State Assembly Member
    Patrick Ahrens
    Patrick AhrensD
    California State Assembly Member
    Jessica Caloza
    Jessica CalozaD
    California State Assembly Member
    Celeste Rodriguez
    Celeste RodriguezD
    California State Assembly Member
    Mike Fong
    Mike FongD
    California State Assembly Member
    Michelle Rodriguez
    Michelle RodriguezD
    California State Assembly Member
    Al Muratsuchi
    Al MuratsuchiD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member
    90% progression
    Bill has passed the legislature and has been sent to the Governor for approval (7/3/2025)

    Latest Voting History

    View History
    July 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    691979PASS

    Key Takeaways

    • Increases California's film tax credit program from $330 million to $750 million annually through 2030.
    • Raises tax credit rates from 20-25% to 35-40% of qualified production expenses starting January 2025.
    • Expands eligibility to include animated series, films and competition shows with $1 million minimum budgets.
    • Requires productions to meet diversity goals and hire trainees from underserved communities to receive full credits.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Rick Zbur
    Rick ZburD
    California State Assembly Member
    Sharon Quirk-Silva
    Sharon Quirk-SilvaD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    Co-Authors
    Josh Becker
    Josh BeckerD
    California State Senator
    Caroline Menjivar
    Caroline MenjivarD
    California State Senator
    Benjamin Allen
    Benjamin AllenD
    California State Senator
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator
    Henry Stern
    Henry SternD
    California State Senator
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Tom Lackey
    Tom LackeyR
    California State Assembly Member
    Mark Gonzalez
    Mark GonzalezD
    California State Assembly Member
    Tina McKinnor
    Tina McKinnorD
    California State Assembly Member
    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Susan Rubio
    Susan RubioD
    California State Senator
    Nick Schultz
    Nick SchultzD
    California State Assembly Member
    Suzette Valladares
    Suzette ValladaresR
    California State Senator
    Anamarie Farias
    Anamarie FariasD
    California State Assembly Member
    Patrick Ahrens
    Patrick AhrensD
    California State Assembly Member
    Jessica Caloza
    Jessica CalozaD
    California State Assembly Member
    Celeste Rodriguez
    Celeste RodriguezD
    California State Assembly Member
    Mike Fong
    Mike FongD
    California State Assembly Member
    Michelle Rodriguez
    Michelle RodriguezD
    California State Assembly Member
    Al Muratsuchi
    Al MuratsuchiD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member

    Summary

    Assemblymember Zbur's comprehensive film and television tax credit legislation significantly expands California's motion picture incentive programs while strengthening diversity and workforce development requirements. The measure increases the annual tax credit allocation from $330 million to $750 million and raises credit rates from 20-25% to 35-40% of qualified expenditures.

    The legislation broadens eligibility to include animated series, films, and large-scale competition shows while eliminating certain ownership restrictions for studio facilities. Productions must now incorporate veteran status and ZIP code data in their diversity plans and assessments. The bill also expands the Career Pathways Training Program, requiring the California Film Commission to partner with more nonprofit organizations to provide technical skills training for individuals from underserved communities.

    Single-member limited liability companies that are disregarded for tax purposes may now assign portions of their credits to affiliated corporations, similar to multi-member entities. The Commission will develop criteria to incentivize productions to employ program trainees, though trainee wages will not count toward qualified expenditure calculations.

    To ensure accountability, qualified taxpayers must submit detailed reports on expenditures, diversity metrics, and workforce training compliance. The Commission will audit submissions and may disallow credits for non-compliance. Productions receiving credits must pay fees to support the training program, with the Commission authorized to increase fees based on industry needs and program outcomes.

    The legislation maintains strict timelines for credit allocation and certification while requiring the Commission to evaluate diversity plans and expand workforce development partnerships. These changes aim to strengthen California's position in the entertainment industry while advancing inclusion and economic opportunity.

    Taking effect immediately as an urgency measure, the bill includes provisions ensuring that if any section is found invalid, the remaining portions stay in force. The Commission must report annually to the Legislature on diversity outcomes and Career Pathways Program impacts.

    90% progression
    Bill has passed the legislature and has been sent to the Governor for approval (7/3/2025)

    Key Dates

    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1138 ZBUR Concurrence - Urgency Added
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Assembly 3rd Reading AB1138 Zbur et al. By Allen Urgency Clause
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1138 Zbur Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Revenue And Taxation Hearing
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Arts, Entertainment, Sports, And Tourism Hearing
    Assembly Committee
    Assembly Arts, Entertainment, Sports, And Tourism Hearing
    Do pass and be re-referred to the Committee on [Revenue and Taxation]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Latest Voting History

    View History
    July 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    691979PASS

    Contacts

    Profile
    Al MuratsuchiD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Sharon Quirk-SilvaD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Benjamin AllenD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 27 row(s) selected.
    Page 1 of 6
    Select All Legislators
    Profile
    Al MuratsuchiD
    Assemblymember
    Bill Author
    Profile
    Sharon Quirk-SilvaD
    Assemblymember
    Bill Author
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Tom LackeyR
    Assemblymember
    Bill Author
    Profile
    Benjamin AllenD
    Senator
    Bill Author
    Profile
    Henry SternD
    Senator
    Bill Author
    Profile
    Susan RubioD
    Senator
    Bill Author
    Profile
    Josh BeckerD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Mike FongD
    Assemblymember
    Bill Author
    Profile
    Tina McKinnorD
    Assemblymember
    Bill Author
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author
    Profile
    Rick ZburD
    Assemblymember
    Bill Author
    Profile
    Caroline MenjivarD
    Senator
    Bill Author
    Profile
    Patrick AhrensD
    Assemblymember
    Bill Author
    Profile
    Jessica CalozaD
    Assemblymember
    Bill Author
    Profile
    Anamarie FariasD
    Assemblymember
    Bill Author
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Celeste RodriguezD
    Assemblymember
    Bill Author
    Profile
    Michelle RodriguezD
    Assemblymember
    Bill Author
    Profile
    Nick SchultzD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Suzette ValladaresR
    Senator
    Bill Author
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    SB-756
    Corporation Tax Law: credit: motion picture.
    February 2025
    Engrossed
    View Bill
    AB-1377
    Income taxes: credits: motion picture credit.
    February 2025
    Engrossed
    View Bill
    SB-630
    Income and corporate taxes: tax credits: motion pictures.
    February 2025
    Engrossed
    View Bill
    SB-132
    Income taxes: tax credits: motion pictures: occupational safety: California Film Commission.
    January 2023
    Passed
    View Bill
    Income taxes: credits: motion pictures.
    February 2021
    Failed
    View Bill
    Personal income tax and corporation tax: Equitable Opportunities Film Credit.
    February 2021
    Failed
    View Bill
    Income taxes: tax credits: motion picture credit: extension: diversity workplan.
    February 2021
    Failed
    View Bill
    Taxes: credits: qualified motion pictures: certified studio construction projects: reports.
    January 2021
    Passed
    View Bill
    Income taxes: credits: motion pictures.
    February 2018
    Failed
    View Bill
    Taxes: credits: motion pictures: Legislative Analyst’s Office report.
    January 2018
    Failed
    View Bill
    Showing 10 of 27 items
    Page 1 of 3