Gavin Newsom Signs California Postproduction Tax Credit Into Law
California Gov. Gavin Newsom has signed AB 2319 into law, establishing the state’s first standalone postproduction tax incentive in an effort to bring Hollywood jobs back to California and make the state more competitive with production hubs including New York and Georgia.
Gov. Gavin Newsom signs AB 2319, creating California’s first standalone postproduction tax incentive to attract Hollywood jobs.
Mario Tama/Getty Images
Newsom signed the bill Friday during a ceremony at the Television Academy offices in North Hollywood. The legislation was carried by state Assemblymember Nick Schultz and focuses specifically on encouraging productions to conduct their postproduction work in California.
Under existing California law, productions that shoot in the state can qualify for tax credits covering postproduction work. AB 2319 expands that eligibility. Productions that filmed outside California can now receive the postproduction tax credit if they choose to conduct their post work in the state. The legislation also covers productions that do not qualify for California production tax credits.
California Post Alliance (CAPA) president Marielle Abaunza welcomed the legislation, calling it an important development for the state’s postproduction workforce.
“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.”
The state has allocated $10 million to the postproduction credit. Schultz previously told The Hollywood Reporter that the amount may not be enough, although it reflects a difficult budget year for California. An insider at the signing ceremony said Newsom described the initial investment as a “down payment,” indicating that postproduction workers could push for additional funding in future years.
The new incentive follows a campaign that began in early 2025. Encompass Music Partners and Encompass Creative founder Peter Rotter wrote an open letter warning about the condition of the Los Angeles recording industry. The letter helped trigger a broader discussion about postproduction in the city.
That discussion continued with a spring 2025 town hall focused on scoring and postproduction. The event brought further attention to the challenges facing California’s postproduction industry.
“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 plans to introduce AB 2319. Following amendments to the bill’s language, the Motion Picture Editors Guild joined the California Post Alliance as a co-sponsor.
California is competing with several states and countries that already provide postproduction tax incentives. New York, New Jersey, Georgia and New Mexico offer such incentives, as do the U.K., Australia and Canada.
Newsom signed AB 2319 on the same day he approved SB 186, a separate measure designed to reduce Hollywood’s exposure to recent business tax credit caps legislation.
Editors Guild national executive director Scott George also praised the two measures.
“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. “[SB] 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.”
