By Justin HAGER

State Senator Anthony Portantino delivered big last week for Southern California’s trademark film and television industry after Gov. Gavin Newsom signed SB 144, legislation by Portantino that authorizes a $330 million expansion of California’s film and television tax incentive program. It’s the largest expansion of the 12-year-old program since 2014, when then-Assemblymember Mike Gatto successfully passed an expansion of the program from $100 million annually to $330 million annually. Portantino’s legislation provides an additional $90 million annually to the current program for the next two years, including $75 million for recurring TV series and $15 million for relocating TV series.

“I am incredibly grateful for Governor Newsom’s leadership and for his commitment to keeping and expanding film and TV production where it belongs,” said Portantino in a press release. “Entertainment content is a core economic driver for California and a big part of my district’s vitality.”

In addition to the expansion of funding for the current film and television production program, Portantino’s bill also takes an innovative approach to securing the long-term vitality of the industry by creating an entirely new, 10-year, $150 million fund for the construction of new soundstages in the state. According to the California Film Commission, the film tax credit program has generated nearly $18 billion in economic benefit, supported 146,000 cast and crew, and led to 26 television series relocating to California, all at a cost of just $2.4 billion. In addition to the expansion of funding for the current film and television production program, Portantino’s bill also takes an innovative approach to securing the long-term vitality of the industry by creating an entirely new, 10-year, $150 million fund for the construction of new soundstages in the state. According to the California Film Commission, the film tax credit program has generated nearly $18 billion in economic benefit, supported 146,000 cast and crew, and led to 26 television series to relocate to California. The state invested $2.4 billion in taxpayer dollars to fund the tax-credit program. As a result of that expenditure, the state has received $18 billion in economic benefit. 

But according to Senator Portantino, construction of soundstages has not kept pace with the growth in film production, scripted television and streaming content, leading him to team up with the State Building and Construction Trades Council to address the issue and author SB 144.

“Investing in new soundstage construction is a critical addition to our efforts to increase filming in the Golden State,” said the Senator. “Modernizing our studio infrastructure will ensure that future entertainment careers will flourish here and generations of people from across the country will continue to see our state as the entertainment capital of the world.”

Another innovative aspect of SB 144 is the legislation’s approach to ensuring that incentives reach workers who reflect the diverse array of racial and gender identities in California’s population. The bill requires productions receiving a tax credit to submit a diversity work plan, which includes diversity goals for workers, and ties an additional tax incentive to meeting those goals. It follows up on those goals by requiring the California Film Commission to report annually on diversity in the film industry, and for the Legislative Analyst’s Office to provide a summary report in 2025 evaluating the effectiveness of the diversity bonus credit. The bill became effective immediately upon signing.