California Assembly Bill (“AB”) 2403 by Assembly Member Elhawary, legislation sponsored by AICP to establish a California Commercial Production Tax Credit Program, faces its next hearing soon.
The AICP strongly encourages all member companies and stakeholders to engage with this process to show broad support for bringing commercials back to California.
Support letters for the Senate Revenue & Taxation Committee hearing must be submitted by 5pm on June 18 to ensure inclusion in the committee analysis. Producer participation remains one of the most effective ways to demonstrate the real-world business and employment impacts of commercial production leaving California.
Click here for a template letter and instructions on how to submit your letter of support.
Last month, AB 2403 passed the California State Assembly by an overwhelming 70–3 bipartisan vote, demonstrating broad recognition that commercial production remains a critical component of California’s creative economy and that the state must act to remain competitive.
The bill now moves to the California Senate, where it has been referred to the Senate Revenue & Taxation Committee and is scheduled to be heard on June 24.
Additionally, AB 2403 has also been referred to the Senate Public Safety Committee. That referral is procedural and relates to provisions requiring applicants to certify tax credit submissions under penalty of perjury.
AB 2403 would establish a targeted tax credit program for commercial production beginning in 2027, helping California compete with jurisdictions that increasingly attract work through production incentives. Commercial production remains one of the most mobile segments of the entertainment industry, and California has continued to lose projects—and the jobs and local spending that accompany them—to competing markets.
While the bill has cleared a major legislative hurdle, the next several weeks will be critical. Senate committee consideration will determine whether the proposal continues advancing toward enactment.
For additional information or questions, contact David Michael González, Vice President, Labor Relations & External Affairs, davidg@aicp.com.