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California Senate Committee Takes Next Step to Boost Tax Credit

The California Senate Appropriations Committee took another step to move forward with legislation that would extend and expand the state’s film and TV production tax credits, although the bill still does not have a specific dollar amount.

The legislation, AB1839, will come before the Appropriations Committee again on Thursday for a hearing after the committee on Monday moved it to its suspense file, a largely procedural maneuver. A finance official told the committee that the legislation was expected to allocate “several hundred million dollars annually” in tax credits, from the current $100 million per year.

The legislation may be amended, after a representative for Sen. Kevin De Leon, chairman of the Appropriations Committee, wrote in an email that changes were needed to address a lottery by which credits are awarded to filmmakers. Nevertheless, De Leon pledged last week to pass the legislation.

The bill, authored by Rep. Raul Bocanegra and Mike Gatto, would extend the program through 2022 and widen eligibility for credits to bigger budgeted feature films and most drama series.

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