Income and corporate taxes: tax credits: motion pictures.

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.