New Law Protects California Film & Television Jobs, Strengthens State’s Production Incentive

SB 186 protects progress made through the California Film & Television Jobs Act as the expanded program brings productions and jobs back to the state.

SACRAMENTO, CA - A months-long effort to protect California's recently expanded Film & Television Tax Credit Program has resulted in a new law providing greater certainty for productions and workers as the state works to bring film and television jobs back to California. Governor Gavin Newsom signed SB 186 into law following efforts led by Assemblymember Rick Chavez Zbur (D-Hollywood) and Senator Ben Allen (D-Santa Monica), along with other legislators, to address the unintended impacts of a business tax credit limitation enacted earlier this year.

The new law comes as California is beginning to see results from last year's historic expansion of the Film & Television Tax Credit Program, made possible by the California Film & TV Jobs Act authored by Assemblymember Zbur and Senator Allen. The Act, which received strong bipartisan support, modernized the program by raising the credit amount, expanding project eligibility, and providing greater flexibility to utilize the credit. Together with an increase in annual funding from $330 million to $750 million, the changes represented a landmark investment in bringing film and television production back to California.

"Last year, we made a historic commitment to bring film and television jobs back to California, and I was determined to make sure we kept that commitment," said Assemblymember Zbur. "We're beginning to see real signs of progress, but we know there is much more work ahead. California is competing every day for these productions and these jobs, and we have to continue fighting to make sure the entertainment industry has a strong future here in the state where it was born. SB 186 protects the progress we've made and provides greater stability and certainty for productions deciding where to invest and for the thousands of workers whose livelihoods depend on this industry."

"We made good progress in restoring jobs for film and tv workers in California last year, but we know the work is not yet done," said Senator Allen. "We are continuing to focus on powering this economic engine that supports thousands of families across the region. SB 186 is just one important step in protecting our modernized Film & TV Program and the private investments that are now returning."

SB 186 strengthens the Film & Television Tax Credit Program by:

• Exempting independent productions from the caps instituted by SB 122;
• Lowering the discount on refunds in the 4.0 Program from 10% to 5% and providing a payout over two years, rather than five; and
• Protecting unused credits earned in the earlier 2.0 and 3.0 programs from premature expiration if the company has a project awarded under the 4.0 Program.

The signing comes amid early signs that California's efforts to bring production back are gaining momentum. Applications to the expanded tax credit program increased 82 percent over the previous year, while television production in Los Angeles increased 34.4 percent from the first to second quarter of 2026. Nine television projects awarded credits in the first round of the program's second year are expected to generate another $608 million in economic activity.

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Assemblymember Rick Chavez Zbur serves as the Democratic Caucus Chair for the California State Assembly and represents the 51st Assembly District, which includes Universal City, Hollywood, Hancock Park, West Hollywood, Beverly Hills, Westwood, West Los Angeles, Santa Monica, and other portions of Los Angeles.