CaliforniaPersonal Income Tax Law: Corporation Tax Law: credits: qualified motion picture: post-production.
What it does
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including various motion picture credits, commonly referred to as motion picture credit 1.0, 2.0, 3.0, and 4.0, and the certified studio credit, to be allocated by the California Film Commission in differing amounts equal to specified percentages of the qualified expenditures of a qualified motion picture in this state. Existing law establishes the continuously appropriated Tax Relief and Refund Account and the Corporation Tax Fund and provides that payments required to be made to taxpayers or other persons are to be paid from those funds.
More detail
This bill would allow a credit against those taxes in an amount between 35% and 50% of qualified expenses relating to the post-production of a qualified motion picture in California to be allocated by the California Film Commission, as specified. The bill would require the credit to be administered in the same manner as the motion picture credit 4.0, except as specified. The bill would require the California Film Commission to utilize a post-production services ratio, as defined, to allocate credits, as specified. The bill would limit the aggregate amount of credits allocated in a fiscal year based on a determination made by the Legislature in the annual Budget Act plus additional amounts, as described. The bill would require that 85% of the total allocable credits are reserved for qualified taxpayers that attest, under penalty of perjury, that they will abide by specified labor condition requirements. By expanding the scope of the crime of perjury, this bill would impose a state-mandated locale program. This bill would allow a qualified taxpayer to elect to be paid a refund if the amount allowable as a credit exceeds the qualified taxpayer's tax liability for the taxable year, as specified. By requiring moneys to be paid from the Tax Relief and Refund Account and the Corporation Tax Fund, the bill would make an appropriation.
Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would include findings and reporting requirements in compliance with this requirement. The bill would require exchange of information between the Legislative Analyst's Office and other specified agencies in order to comply with these requirements. The bill would make the unauthorized disclosure of this information subject to existing law, the violation of which is a crime. By expanding the scope of a crime, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Sections 17039 and 23036 of the Revenue and Taxation Code proposed by AB 2222 to be operative only if this bill and AB 2222 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 19Chaptered by Secretary of State - Chapter 343, Statutes of 2026.Latest
- Sep 19Approved by the Governor Gavin Newsom.Became Law
- Sep 10Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 31
- Vote recorded AB 2319 Schultz Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 2. Page 6919.).Major
- Vote recorded 3rd Reading AB2319 Schultz et al. By Allen. Result: pass.Upper
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Aug 30Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 5.).Passed Senate
- Aug 28Read second time. Ordered to third reading.Minor
- Aug 27Read third time and amended. Ordered to second reading.Major
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 5. Noes 1.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 25Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 24From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 10Referred to Com. on REV. & TAX.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 3. Page 5313.)Passed Assembly
- Vote recorded AB 2319 Schultz Assembly Third Reading. Result: pass.Lower
- May 21Read third time and amended. Ordered to third reading. (Page 5243.)Major
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 21From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 20). Re-referred to Com. on APPR.Minor
- Apr 20In committee: Set, first hearing. Referred to REV. & TAX. suspense file.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 7From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0.) (April 7). Re-referred to Com. on REV. & TAX.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Lower
- Mar 23Re-referred to Com. on A.,E.,S., & T.Minor
- Mar 19From committee chair, with author's amendments: Amend, and re-refer to Com. on A.,E.,S., & T. Read second time and amended.Major
- Mar 19Referred to Coms. on A.,E.,S., & T. and REV. & TAX.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced