That’s a Wrap! Schultz Post-Production Tax Credit Heads to the Governor

(SACRAMENTO) - The California Legislature has passed the state's first standalone post-production tax credit with bipartisan support. Assembly Bill 2319 establishes the California Post-Production Tax Credit program, a targeted incentive to encourage film and television post-production work to remain in California, supporting high-quality jobs, preserving long-standing industry infrastructure, and generating significant economic activity throughout the state.

"California pioneered the work of taking dreams to the big screen, and it's the collective work of the most experienced and talented workforce in the world that has kept the industry going and pushing the limits of imagination for over a century," said Assemblymember Schultz (D-Burbank). "With AB 2319, we're setting the stage to retain and grow our post-production workforce and creative economy across the state."

California remains the center of the global film and television industry, but post-production work, including editorial sound, scoring, visual effects, and finishing, is increasingly being performed in other states and countries that offer targeted incentives.

According to data from CVL Economics, California's post-production sector employs over 12,000 workers at more than 1,800 firms across the state. However, between 2005 and 2025, California lost approximately 1,874 direct jobs in post-production.

Last year, California doubled the California Film and Television Tax Credit, however, current law limits eligibility for the credit primarily to projects that complete principal photography in California. As a result, post-production work is often moved to competing jurisdictions that offer standalone or more flexible incentives for post-production activity. States and countries including New York, New Jersey, Canada, the United Kingdom, and Australia all offer incentives that allow productions filmed elsewhere to complete post-production locally while still qualifying for tax credits.

"The California Post Alliance (CAPA) was formed to shine a light on the challenges facing California's post-production community, and the passage of AB 2319 is a powerful testament that our legislators are listening", said the California Post Alliance Leadership. "We are deeply grateful to Assemblymember Nick Schultz for his commitment to and leadership on this bill, to his staff and our co-sponsors MPEG Local 700, as well as all of the industry advocates who helped bring us to this historic moment. Now with hope and respect, we urge Governor Newsom to sign AB 2319 and help bring California's post-production jobs home and keep them here."

AB 2319 creates a post-production incentive that allows post-production expenditures incurred in California to be eligible for the tax credit, regardless of where principal photography occurred. By investing in a targeted credit, California can keep high-wage post-production jobs in the state, increase the utilization of our existing post-production facilities and scoring stages, support small businesses and vendors, generate taxable income and economic activity across multiple sectors, and help California compete with other locations offering post-production incentives.

"Our union is proud of the legislature's overwhelming, bipartisan vote to create a standalone post-production tax incentive in California," said Editors Guild National Executive Director Scott M. George. "Lawmakers understand that skilled, middle-class, union post-production jobs matter to our state's economy. Given a level playing field, California craftspeople can ensure the Golden State remains competitive for generations to come. We are thankful for everything Governor Newsom has done so far to support motion picture production and post-production, and we look forward to his signing this bill to add to his legacy as governor."

Governor Newsom now has until September 30^th to sign the bill. Once signed into law, the provisions will go into effect on January 1^st, 2027. Although there is not a specific line item for funding in the budget bill, the Legislature's End-of-Session budget proposal does set aside $10 million of funding for startup of the post-production tax credit program, should the bill be signed into law. The program would be then reflected in future state budgets after the startup period.

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Nick Schultz represents 44^th Assembly District, which includes the cities of Burbank, Glendale, and Los Angeles, as well as the communities of La Crescenta, Lake View Terrace, Montrose, North Hollywood, Shadow Hills, Sherman Oaks, Sunland-Tujunga, Studio City, Toluca Lake, and Valley Village.