Assembly Bill 2403, legislation to establish a California Commercial Production Tax Credit Program, was held in the Senate Appropriations Committee this month, meaning the bill will not advance any further during this legislative session.
This outcome is deeply disappointing and unexpected. AB 2403 had already cleared the Assembly with statewide, bipartisan support and continued to build momentum in the Senate, coming remarkably close to reaching the Governor's desk. Until the Committee stalled the bill, we had every reason to believe it remained viable and had the necessary support to clear the Senate.
AB 2403 represented an important opportunity to address the growing competitive disadvantages facing California's commercial production industry. The legislation is written to create a dedicated incentive for qualified commercial productions, with a $15 million annual allocation, while incorporating requirements designed to ensure that the program generated economic activity and employment in California.
While we are disappointed that the bill will not cross the finish line this year, the progress made by AB 2403 is significant. The legislation brought unprecedented attention in Sacramento to the unique challenges facing commercial production and demonstrated that there is broad recognition of the need to keep this work — and the jobs, wages, and local spending it generates — in California.
We are especially grateful to the many production companies, workers, unions, vendors, and industry partners who rallied behind AB 2403 this year and submitted letters of support throughout the legislative process, helping demonstrate the breadth and depth of the industry's commitment to this effort. The strong coalition supporting the bill, including the Entertainment Union Coalition, TV Academy, and numerous AICP Members and individuals was instrumental in advancing the legislation as far as it went.
The work, however, does not end with the conclusion of this legislative session.
AICP remains fully committed to advocating for California's commercial production industry and keeping it an important resource for all of our members nationwide. Commercial production is a vital component of California's entertainment economy, supporting a highly skilled workforce as well as vendors, small businesses, and communities throughout the state. We will continue working with legislators, policymakers, labor, and industry stakeholders to identify opportunities to strengthen California's competitiveness and to relieve the economic and regulatory burdens that make production increasingly difficult and expensive in California.
AB 2403 may not have reached the Governor this year, but the conversation it started and the progress it made will continue. We are grateful to everyone who helped move it forward and we look forward to building on that momentum in the work ahead.
For any questions related to this issue, please contact David Michael González, Vice President of Labor Relations & External Affairs, at davidg@aicp.com.