Income and corporate taxes: tax credits: motion pictures.

California's film and television production tax credit program would undergo substantial expansion under legislation introduced by Assembly Members Zbur, Bryan, and Quirk-Silva. The measure increases the annual tax credit allocation from $330 million to $750 million and raises credit percentages from 20-25% to 35-40% of qualified expenditures for productions filming in California.

The bill broadens eligibility to include live-action and animated series averaging 20 minutes or more per episode, animated films, and large-scale competition shows. For television series that previously received credits but have not filmed in over 48 months, the measure allows them to qualify as new series when reapplying. The legislation also modifies how recurring television series receive ongoing credits, implementing an allocation formula based on their initial credit amount plus 3% annual increases. Series must request new allocations within 18 months of completing their previous season's filming to maintain guaranteed funding.

To promote industry diversity, productions must submit detailed workforce diversity plans and assessments to receive the full credit amount. The bill maintains the Career Pathways Training program funded by a 0.5% fee on credits (0.25% for independent films), with authority to increase the fee up to 1% starting in 2028 based on program evaluation. Independent films now have higher qualified expenditure caps of $20 million.

For studio construction projects receiving credits, the measure eliminates requirements that production companies must own the soundstage or have a minimum 10-year lease. The legislation requires prevailing wages for studio maintenance work and implements new verification procedures for diversity goals and workforce development outcomes.

The California Film Commission gains discretion to reallocate up to 10% of funds between production categories to maximize credit utilization. The commission must issue quarterly reports on program diversity metrics and career training outcomes. A two-thirds vote of the Legislature is required for passage as the bill would increase state tax revenue.