title
CC - CONSENT ITEM: Adoption of a Resolution in Support of California Senate Bill 630 and Assembly Bill 1138 (2025 Legislative Session) to Expand and Modernize California’s Film and Television Tax Credit Program.
body
Meeting Date: June 23, 2025
Contact Person/Dept.: Shelly Wolfberg or Jesse Mays/City Manager’s Office
Phone Number: (310) 253-6000
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Senator Allen, Senator Smallwood-Cuevas, Assemblymember Zbur, Assemblymember Bryan and Meetings and Agendas - City Council (06/19/2025)
Department Approval: John M. Nachbar, City Manager (06/18/2025)
______________________________________________________________________
RECOMMENDATION
Staff recommends the City Council adopt a Resolution in support of California Senate Bill 630 and Assembly Bill 1138 (2025 Legislative Session) to expand and modernize California’s Film and Television Tax Credit Program.
BACKGROUND/DISCUSSION
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a motion picture credit. SB 630 and AB 1138, introduced by Senator Ben Allen and Assemblymember Rick Chavez Zbur, with joint authorship from Senators Caroline Menjivar and Henry Stern and Assemblymembers Isaac Bryan and Sharon Quirk-Silva (respectively), will strengthen and modernize the California Film & TV Tax Credit, with the goal of keeping productions and jobs in California. SB 630 and AB 1138 seek to maximize the impact of this funding increase by refining program requirements to bolster California’s competitiveness.
These bills significantly expand and enhance California's film and television tax credit program starting in the 2025 tax year. The bills raise the cap on qualified expenditures to $120 million, increase credit percentages (up to 40% for some productions), and broaden eligibility to include animated films, large-scale competition shows, pilots, and reboots. The bills also modernize rules for recurring and independent productions, remove certain ownership and lease requirements, and introduce a new 2% credit bonus for hiring through the Career Pathways Program, which will now partner with more nonprofits to train underserved communities. Further, the bills streamline credit allocation, increase transparency through legislative reporting, and eliminate penalties for choosing refundable credits, while granting the California Film Commission more flexibility to manage and redistribute credit allocations efficiently.
At the March 10, 2025 City Council Meeting, Vice Mayor Puza reported meeting with representatives from Sony, Amazon, Apple, Warner Brothers, and Discovery who all indicated support of SB 630 and AB 1138 to strengthen and modernize film tax credits, and he received support to agendize a resolution to support the bills.
The City of Culver City, founded in 1917, is known as “The Heart of Screenland”. The City Council has long demonstrated unwavering support for the film industry and measures that incentivize production within the City. Endorsing SB 630 and AB 1138 aligns with the City’s longstanding dedication to preserving film and television production-an essential economic driver for the region. These bills will help safeguard living-wage jobs, sustain small businesses that support the industry, and strengthen California’s ability to compete on the global stage.
SB 630 and AB 1138 reinforce the City’s goals in the Legislative and Policy Platform:
• Promote the Creative Economy, including film production, within Culver City and California, and
• Retain and expand film, television, streaming, and commercial advertisement production and post-production in Culver City, the state of California, and the United States.
On June 9th, SB 630 was referred to the Committee on Arts, Entertainment, Sports, & Tourism. On June 4th, AB 1138 was referred to the Senate Rules Committee. If the City Council adopts the Resolution in support of SB 630 and AB 1138, City staff will transmit the City Council’s position to the Bills’ authors and Legislative committee members who will be considering the approval of these Bills. If either SB 630 or AB 1138 is significantly modified as it moves through the Legislature, staff will consider the appropriateness of providing the City’s Resolution of support.
FISCAL ANALYSIS
There is no fiscal impact associated with the decision on whether or not to adopt and distribute Resolutions in support of SB 630 and AB 1138. The fiscal impacts of SB 630 and AB 1138 are unknown at this time. The implementation of one or both of these bills, which could bolster film and television productions and production-related jobs in California, which could impact City business license tax revenue and sales tax revenue.
ATTACHMENTS
1. 2025-06-23__ATT__Bill Text: SB 630 (Allen) Income and corporate taxes: tax credits: motion pictures. (Amended - 05/29/2025)
2. 2025-06-23__ATT__Bill Text: AB 1138 (Zbur) Income and corporate taxes: tax credits: motion pictures. (Amended - 06/02/2025)
3. 2025-06-23__ATT__Draft Resolution in Support of SB 630 (Allen) and AB 1138 (Zbur) Income and corporate taxes: tax credits: motion pictures.
MOTIONS
That the City Council:
1. Adopt a Resolution in support of California Senate Bill 630 and Assembly Bill 1138 (2025 Legislative Session) to expand and modernize California’s Film and Television Tax Credit Program; or
2. Provide other direction to the City Manager as deemed appropriate.