SB 630, as introduced by Senators Ben Allen, Caroline Menjivar and Henry Stern, effects income and corporate taxes and tax credits for motion picture productions. It purportedly has the potential to stimulate local production and unlock meaningful opportunities for cast, crew, and related businesses.
What It Does
It amends Section 17053.98 as well as 17053.98.1, 23698, and 23698.1 of the Revenue and Taxation Code. If passed, this law allows various credits against the taxes imposed by current laws, including motion picture credits for taxable years beginning on or after January 1, 2020, to be allocated by the California Film Commission on or after July 1, 2020, and before July 1, 2025 whereas existing law provides for a new motion picture credit to be allocated by the commission on or after July 1, 2025, and before July 1, 2030.Existing law defines a “qualified motion picture” for purposes of these tax credits to include a motion picture that is produced for distribution to the general public that includes, among other productions, a feature with a specified minimum production budget, an independent film, a new television series produced in California, as specified, or a television series that relocated to California.
This bill, with respect to the certified studio construction project credit, for taxable years beginning on or after January 1, 2025, would revise the definition of qualified motion picture, the credit amount allowed for a qualified motion picture, including to 35% for amounts paid or incurred inside the Los Angeles zone, and the total credit amount allowed to be allocated to a television series, as specified, in conformity with the Motion Picture Credit 4.0, as described above.
The bill would also end the requirement that a certified studio construction project is produced by a qualified taxpayer that either owns more than 50% of the soundstage or soundstages on which the production is filmed or entered into a contract or lease of 10 years or more.
It allows for the California Film Commission additional flexibility to move tax credit monies amongst various categories in order to be able to respond to demand. Additionally, it gives the California Film Commission the authority to set a limitation on how long recurring television credits may be held by recipients. To view SB 630 in its entirety visit leginfo.legislature.ca.gov.
Why This Bill?
The entertainment landscape has never been more competitive. Streaming platforms, international co-productions, and out-of-state tax breaks lure producers away from California, risking not only the loss of direct jobs on set but also the broader economic benefits—hotels, catering, transportation, and more.Who Supports This Bill?
- Directors Guild of America
- LiUNA! - Local 724
- SAG-AFTRA
- Teamsters Local 399
- Writers Guild of America West
- California International Alliance of Theatrical Stage Employees (IATSE) Council
- American Federation of Musicians
- Entertainment Union Coalition
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