Governor Gavin Newsom signed AB 2319, establishing California’s first standalone postproduction tax credit, at a North Hollywood ceremony. The law extends eligibility to productions that filmed outside California if they bring postproduction work into the state and is seeded with $10 million, described by officials as an initial "down payment." Supporters—including the California Post Alliance and the Motion Picture Editors Guild—say the incentive, paired with SB 186 signed the same day, aims to preserve and grow postproduction jobs in California.
Newsom Signs California’s First Standalone Postproduction Tax Credit — $10M 'Down Payment' to Bring Jobs Back
Gov. Gavin Newsom Signs CA Postproduction Tax Credit Into Law
Gov. Gavin Newsom on Friday signed AB 2319, creating California's first standalone postproduction tax incentive, at a ceremony held at the Television Academy offices in North Hollywood. The new law is intended to attract postproduction work and related jobs back to the state and to make California more competitive with other production hubs.
What AB 2319 Does
AB 2319, carried by Assemblymember Nick Schultz, provides tax credits to productions that locate their postproduction operations in California. Under previous law, productions could claim postproduction tax credits only if they had shot in California; AB 2319 expands eligibility to projects that filmed elsewhere or otherwise do not qualify for California’s production tax credits.
Funding And Next Steps
The state allocated $10 million to seed the new postproduction credit. Assemblymember Schultz and other advocates have cautioned that this initial appropriation may be modest given the scale of the industry, but attendees said Governor Newsom characterized the allocation as a "down payment," suggesting additional funding could follow in future budgets.
Industry Response And Origins
Marielle Abaunza, president of the California Post Alliance (CAPA), praised the law for recognizing "the vital role that behind-the-scenes craftspeople play in California's creative economy," and thanked Governor Newsom and Assemblymember Schultz for championing the sector. The Motion Picture Editors Guild joined CAPA as a co-sponsor after the bill was amended.
Noelle Stehman of grassroots group Stay in L.A. warned at the signing that without action “the California film and TV industry will become the next Detroit auto.”
The push for a dedicated postproduction incentive traces back to early 2025, when Peter Rotter, founder of Encompass Music Partners and Encompass Creative, published an open letter highlighting threats to the L.A. recording and postproduction ecosystem. A spring 2025 town hall on scoring and postproduction helped galvanize support and shaped the policy response.
How This Fits With Broader Policy
Newsom signed AB 2319 the same day he approved SB 186, legislation designed to limit the film sector's exposure to recent business tax credit caps. Scott George, national executive director of the Editors Guild, called the pair of bills "historic," saying SB 186 helps preserve the California Film and TV Tax Credit Program while AB 2319 complements it by encouraging out-of-state productions to hire California-based postproduction crews.
Competitive Context
Several U.S. states—such as New York, New Jersey, Georgia and New Mexico—and international production hubs including the U.K., Canada and Australia already offer postproduction incentives. Supporters hope California’s new credit will persuade productions that filmed elsewhere to bring their post work and jobs back to the state.
What To Watch
Advocates will likely press for larger appropriations in future budgets, and industry groups will monitor whether AB 2319 succeeds in driving measurable postproduction activity and employment back to California.
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