CaliforniaIncome tax: credits: commercial 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 numerous motion picture credits.
More detail
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against the taxes imposed by those laws to a qualified taxpayer that produces qualified commercials, as defined, in the state in an amount equal to 20% or 30% of the qualified production costs in excess of $500,000 that are attributable to the production of a qualified commercial, as specified. The bill would exclude any commercial that is created entirely by generative artificial intelligence, as specified, or that utilizes generative artificial intelligence or autonomous vehicles in a manner that replaces the job functions customarily performed by a human worker in the production. The bill would require the qualified commercial to adhere to specified labor standards. The bill would require the California Film Commission to establish an application process and allocate the credits on or after July 1 each year, in accordance with certain requirements. The bill would limit the aggregate amount of credits that may be allocated for a fiscal year under these provisions to $15,000,000. The bill would require specified certifications under penalty of perjury. By expanding the scope of a crime, this bill would impose a state-mandated local program.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
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.
This bill would take effect immediately as a tax levy.
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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
- Aug 13In committee: Held under submission.Latest
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 2Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 1From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 30).Major
- Jun 30
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 24From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on PUB. S.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Public Safety]. Result: pass.Upper
- Jun 10Referred to Coms. on REV. & TAX. and PUB. S.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3. Page 5321.)Passed Assembly
- Vote recorded AB 2403 Elhawary Assembly Third Reading. Result: pass.Lower
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 14. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14Coauthors revised.
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 27). Re-referred to Com. on APPR.Minor
- Apr 28Coauthors revised.
- Apr 27
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 20In committee: Set, first hearing. Referred to REV. & TAX. suspense file.Minor
- Apr 14Re-referred to Com. on REV. & TAX.Minor
- Apr 13From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Apr 13In committee: Hearing postponed by committee.
- Mar 23Re-referred to Com. on REV. & TAX.Minor
- Mar 19From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Mar 19Referred to Com. on REV. & TAX.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced