The California Senate Appropriations Committee convened on June 30, 2025, to address urgent measures impacting the state's film and television industry, with a primary focus on Assembly Bill 1138. This bill, co-authored by Assemblymember Zibur and Senator Allen, aims to modernize the state's film and television tax credit program, which has been deemed critical for revitalizing California's struggling entertainment sector.

Assemblymember Zibur highlighted the dire state of California's film industry, citing significant job losses and economic downturns reminiscent of the Great Depression. He emphasized that for every dollar spent on tax credits, the state sees a return of $24.16 in economic output, underscoring the importance of this investment for job creation and tax revenue. The bill proposes to increase the base tax credit rate and expand eligibility for various types of productions, aiming to retain and attract high-quality jobs and support small businesses.

Senator Allen echoed these sentiments, noting that many productions have relocated out of state due to California's inability to compete with more attractive tax incentives offered by other jurisdictions. He stressed the need for immediate action to prevent further losses, as approximately three-quarters of projects that fail to secure tax credits end up moving production elsewhere, costing the state billions.

The committee heard strong support for AB 1138 from various stakeholders, including representatives from the Motion Picture Association, the Hollywood Chamber of Commerce, and major production companies like Netflix and Disney. They all emphasized the bill's potential to restore jobs and economic activity in California.

Despite the overwhelming support, some committee members expressed concerns about the broader issues facing the industry, such as rising production costs and the legal environment in California. One member cautioned that while the bill may provide temporary relief, it is essential to address the underlying factors driving productions out of the state.

The committee ultimately moved to advance AB 1138, reflecting a bipartisan commitment to bolster California's film and television industry and ensure its status as a leading hub for creativity and production. The anticipated outcomes include job retention, increased tax revenue, and a revitalized entertainment sector, crucial for the state's economy.