The Entertainment Union Coalition is celebrating a landmark win for California’s entertainment workforce with the passage of AB 1138, a bill that modernizes and strengthens the state’s Film and Television Tax Credit Program. Signed into law yesterday by Governor Gavin Newsom at a press conference in Burbank, AB 1138—alongside the already-enacted budget expansion—represents the culmination of months of tireless advocacy by union members and allies across the industry.
Together, the expansion and modernization of the Film and Television Jobs Program deliver the two critical pillars long championed by the Entertainment Union Coalition since the beginning of the year. With both components now in place, California is poised to retain and create thousands of union jobs and support a thriving film and television industry across the state.
“This is a proud moment for our members, and a testament to what we can achieve through solidarity and collective action,” said leaders of the Coalition. “To truly revitalize our industry and maximize job creation, both funding and modernization had to move together—and thanks to our members and partners, that goal has been realized.”
Key enhancements under AB 1138 include:
A Base Credit Rate increase to 35% for all participants, including independent productions.
Eligibility expansion to include half-hour series, animation, and large-scale competition series.
A raised per-production cap to $120 million.
Enhanced regional incentives, with credits up to 45% for certain expenditures outside Los Angeles.
Tripled funding for independent films, from $26 million to $75 million, and a raised per-project cap.
Expanded access to career pathways, enabling more nonprofit organizations statewide to partner with the program and open doors to a broader range of Californians.
The Coalition extended its deepest gratitude to Assemblymember Rick Zbur and Senator Ben Allen, whose leadership was instrumental in driving the bill forward. From the outset, both legislators prioritized jobs and workforce investment, ensuring that the program centered working families and long-term career opportunities.
The passage of AB 1138 follows the recent signing of the state budget, which expands the tax credit program from $330 million to $750 million annually—effective immediately. The increased funding and policy reforms will remain in place through 2031.
The victory also highlights the broad support from within state government, including Governor Newsom, Senate President pro Tempore Mike McGuire, Assembly Speaker Robert Rivas, and Budget Chairs Jesse Gabriel and Scott Wiener, all of whom championed the cause even in the face of a difficult budget year.
Their recognition of the entertainment industry’s cultural and economic importance—especially its middle-class jobs with fair wages, health care, and retirement benefits—played a critical role in this achievement.
Ultimately, it was the power of union solidarity and member advocacy that moved the needle. Through coordinated efforts, personal storytelling, and public action—including the “Keep California Rolling” campaign—entertainment workers reminded lawmakers what’s truly at stake: families, small businesses, and the economic vitality of the state.
Now, with the foundation secured, the Entertainment Union Coalition calls on studios and content producers to recommit to California and get union crews back to work—right here at home.
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