SAG-AFTRA welcomes expansion of California’s film and TV tax credit programme

Fran Drescher and Duncan Crabtree-Ireland

US media union SAG-AFTRA has welcomed the passage of a bill designed to modernise California’s film and television tax credit programme and help restore entertainment jobs in the state.

The bill, California AB 1138, expands the types of projects that can apply to the tax credit programme to include half-hour series, animation and large-scale competition series.

It also raises the per-production cap to US$120m, enhances incentives for filming outside the LA area and triples funding for independent films.

Championed by Assembly member Rick Zbur and state senator Ben Allen, it comes shortly after California’s film and television tax credit programme was expanded significantly by state governor Gavin Newsom, increasing annual incentive funding to US$750m, from July 7 through to the year 2031.

SAG-AFTRA president Fran Drescher and its national executive director and chief negotiator Duncan Crabtree-Ireland both thanked Newsom, Zbur, Allen and other legislators for their work to revamp the funding tools.

It is hoped the changes will revitalise the state’s struggling production sector by attracting new projects and reversing the outflow of talent and investment.

While California was once the undisputed home of filmed entertainment, it has faced increasing competition from states such as Georgia, which is now a major production hub, offering better financial incentives and access to skilled crews. Internationally, countries like Canada and the UK have also become preferred locations for high-budget content, drawn by similar advantages.

Drescher said: “AB 1138 and Gov Newsom’s expansion of funding are enormous victories – not just for entertainment workers but for the entire California economy. A prosperous film and television industry fuels tourism, retail, real estate and small businesses across the state.

“To our incredible SAG-AFTRA members who spoke up, sent letters and took action, your advocacy made this win possible. May this be the start of a Hot Production Summer!”

SAG-AFTRA national executive director and chief negotiator Duncan Crabtree-Ireland added: “When film and TV production thrives, California thrives. With AB 1138 passed and expanded funding now in place, we’re poised to see more jobs, more opportunity and a stronger future for the thousands of workers and small businesses who power this industry.

“We’re also incredibly proud of our SAG-AFTRA members and Entertainment Union Coalition partners whose collective action made this victory possible. This is a major step forward in revitalising production in California – and we’re just getting started.”