LOS ANGELES, September 21, 2026 – On a bright Friday morning at the Television Academy in North Hollywood, local sound editors, visual effects artists, and labor unions collectively held their breath. For many years now, they had seen jobs leave for competing centers. And then came the pen stroke.
Gavin Newsom, the Governor of California, signed historic legislation that extended the film and TV production tax incentives in the state while creating a new tax credit for post-production specifically. This legislative package, consisting of both Assembly Bill 2319 and Senate Bill 186, is a bold and aggressive move to ensure that the creative industry remains alive in Hollywood. Details published on the Official California Governor Website highlight how the state is doubling down on protecting below-the-line industry workers.
Here’s why this matters so much: Post-production personnel used to be caught out by the loopholes in the state tax laws. With the previous tax rules, at least 75% of the principal photography of any project would have to be filmed in California for the post-production tax benefits. The bill demolishes the rule, and now a film shot in Atlanta or Vancouver can be brought straight to Los Angeles and edited there to claim up to 50% in post-production credits.
“This program will literally save jobs here in Los Angeles and across the state,” Assembly member Schultz explained outside the venue, highlighting how vital these protections are for working families. And frankly, he’s not exaggerating. The initial $10 million allocation for the post-production credit is modest, sure, but industry leaders view it as an essential beachhead against runaway production.
On the other hand, Senate Bill 186 reworks the whole tax incentive structure to ensure that mid-size film studios do not leave the state. The fact that it takes five years for an independent film project on a budget of $20 million to realize the benefits of the tax credit has been a recipe for financial disaster. Senate Bill 186 addresses this cash flow problem by reducing the time it takes to realize these credits from five years to two years.
This is because of the huge increase in the state’s basic film and television tax credit program. The state has increased its cap from $330 million to $750 million until mid-2030. This information has been made available in the state’s economic reports released by the California Film Commission, which show that for each dollar given in tax credits, an economic value of about $24 is created. Over 170 projects have joined since this new development.
But will these credits put an end to runaway productions overnight? Likely not—runaway production is a stubborn beast. However, for many sound mixers, colorists, and editors around the state, it has become quite obvious that Hollywood is not willing to relinquish the crown.
