California Film Commission: motion picture tax credits: tracking and compliance program.

Senator Smallwood-Cuevas's motion picture tax credit legislation establishes a comprehensive monitoring system within the California Film Commission to track the economic impacts of productions receiving state tax incentives. The new program requires productions to submit detailed workforce data and project outcomes, enabling regular assessment of the tax credits' effectiveness in creating jobs and supporting industry growth.

Beginning in 2026, productions receiving tax credits must provide annual compliance reports containing employee demographic information, geographic distribution of hiring, apprenticeship utilization data, and criminal justice system interaction statistics. Within 60 days of project completion, recipients must also submit final reports enabling analysis of job creation, revenue impacts, industry growth patterns, and workforce disparities. Independent films are exempt from the final reporting requirement.

The Film Commission will partner with California academic institutions or research organizations to conduct biennial economic impact analyses using the collected data. Productions face monetary penalties for non-compliance or data falsification. The commission must publish annual public reports summarizing trends and recommendations, while maintaining authority to develop implementing regulations. The program takes effect upon legislative appropriation of funding.