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California legislature passes postproduction tax credit bill with $10 million earmarked for launch

If Governor Newsom signs AB 2319, California will offer tax credits for movie and TV postproduction work even if physical shooting occurred elsewhere.

Updated Aug 31, 2026 · 20:24 UTC1 reports

The short version

  • The California legislature passed AB 2319 to grant a 35% tax credit for postproduction work—such as editing, VFX, and sound mixing—conducted in the state on projects filmed elsewhere.
  • A state budget proposal sets aside $10 million in initial funding to launch the program, reduced from an original $100 million request due to budget constraints.
  • The bill is backed by major media companies and labor unions, including Warner Bros. Discovery, Sony Pictures Entertainment, IATSE, and SAG-AFTRA.
  • Governor Gavin Newsom has until the end of September to sign or veto the legislation.

Key facts

  • The California state legislature passed AB 2319 on a 65–2 vote, advancing the bill to Governor Gavin Newsom's desk.[The Hollywood Reporter]
  • AB 2319 creates a 35 percent base tax credit for postproduction work like editing, VFX, sound mixing, and scoring done in California, even if physical production occurred out of state.[The Hollywood Reporter]
  • The legislature's end-of-session budget proposal designates $10 million to cover startup costs if the bill becomes law, down from the $100 million originally proposed by Assemblymember Nick Schultz.[The Hollywood Reporter]
  • Industry backers of the bill include the California Post Alliance, Motion Picture Editors Guild, IATSE, SAG-AFTRA, Warner Bros. Discovery, and Sony Pictures Entertainment.[The Hollywood Reporter]

What remains uncertain

  • Whether Governor Gavin Newsom will sign or veto AB 2319 before his deadline at the end of September.[The Hollywood Reporter]
  • Whether future legislative sessions will expand the program's funding beyond the initial $10 million starting allocation.[The Hollywood Reporter]

Sources