California lawmakers have proposed a new bill that would increase the state’s tax credit for local film and TV productions to 35%, as well as expanding the subsidy to cover animated films, series and shorts for the first time. These projects would need to have a minimum production budget of US$1 million, but if Senate Bill 630 passes, it could provide a much-needed lift to California’s animation industry. 

The current tax credit only covers live-action films and scripted TV shows up to 20% to 25% of budget, and the proposed changes are designed to protect and bring back jobs that have left California for other states and international locations with more competitive incentives. 

The new legislation would also increase the total amount of support the California Film Commission can offer each year from US$330 million to US$750 million. And there will be an additional 5% available on qualified expenditures for productions located in “economic opportunity zones”—basically, underdeveloped areas the state would like to attract business to.

Film production in California has slowed in recent years, and the credit might help bring some production activity back to the Golden State. Overall, there were 23,480 shoot days filmed on location in LA in 2024, which is down by 5.6% year over year, according to non-profit FilmLA’s January 2025 report. The organization attributes this decline to industry contraction and slow post-strike recovery. 

Senate Bill 630 is currently sitting with a committee for further review and is expected to pass (or not) before July.

Image courtesy of Lala Miklós via Unsplash.