Gov. Gavin Newsom Signs CA Postproduction Tax Credit Into Law

Gov. Gavin Newsom signed a standalone postproduction tax incentive into law on Friday in a bid to lure Hollywood jobs back to California and render the state more competitive with the likes of New York and Georgia.

The governor gave his stamp of approval to AB 2319 in a ceremony at North Hollywood’s Television Academy offices on Friday.

The bill, carried by state Assemblymember Nick Schultz, rewards productions that locate their postproduction work in the state. Existing law allows projects that shoot in California to qualify for tax credits on their postproduction work. AB 2319 additionally extends tax credits to productions that shot elsewhere but choose to locate their post work in the state, or that do not qualify for California production tax credits.

“Today marks a historic new chapter for California’s post-production workforce. The signing of AB 2319 recognizes the vital role that behind-the-scenes craftspeople play in California’s creative economy,” said California Post Alliance (CAPA) president Marielle Abaunza in a statement. “We are deeply grateful to Governor Newsom who, by establishing California’s first-ever standalone post-production tax incentive, has given hope to thousands of post-production workers. We are so grateful to Assemblymember Nick Schultz and his entire team for authoring this bill and championing our segment of the industry every step of the way.”

$10 million has been allocated to the postproduction credit in the state, which Assemblymember Schultz previously told The Hollywood Reporter may not be enough but reflects a difficult budget year for the state. Still, an insider at the event said that Newsom called the initial investment in the tax credit a “down payment,” suggesting that he was aware postproduction workers would be advocating to allocate more funds to the program in future years.

The signing concludes — at least for now — a journey that began in early 2025 when Encompass Music Partners and Encompass Creative founder Peter Rotter penned an open letter raising the alarm about the state of the L.A. recording industry, triggering a larger conversation around postproduction in the city. A town hall in the spring of 2025 focused on scoring and postproduction brought even more attention to the issue.

“This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,” Noelle Stehman, a member of the grassroots group Stay in L.A., said at the event.

In early 2026, freshman state Assemblymember Schultz announced that he was introducing AB 2319 to address the problem. After some amendments to the bill’s language, the Motion Picture Editors Guild joined the grassroots group the California Post Alliance as a co-sponsor.

Some of Hollywood’s top state rivals when it comes to film and television production, including New York, New Jersey, Georgia and New Mexico, already offer postproduction tax incentives. So do several countries that attract a lot of production, such as the U.K., Australia and Canada.

“This is a historic day for Editors Guild members and for California’s film and TV workers more broadly,” Editors Guild national executive director Scott George said in a statement. “AB 186 ensures that the California Film and TV Tax Credit Program continues to drive the recovery of our industry in its historic home, and AB 2319 will complement the program by making sure that even projects shooting outside of our state can come back to California to employ Editors Guild members in post-production.”