CA Post Tax Credit Bill Passes Assembly Appropriations Committee, Heads to Floor Vote

California Assembly bill AB 2319—the postproduction tax credit bill—has passed in the Appropriations Committee, and having now cleared all Assembly committees, is headed to the Assembly Floor for a vote, Motion Picture Editors Guild (IATSE Local 700) announced in a statement on Thursday.

AB 2319 differs from California’s film tax credit, which requires 75% of principal photography to have been shot in the state of California. Instead, AB 2319 aims to incentivize projects to post in the State, even if they filmed elsewhere or were unable to qualify for the current tax incentive bill. Supporters say they want to “level the playing field” by targeting post business that is not evaporating, but rather being lured out of the Golden State’s struggling postproduction industry.

“Based upon economic modeling of direct, indirect and induced efforts of this eroding postproduction market, the total economic impact to California is astounding,” Assemblymember Nick Schultz, author of the bill, said during an April 6 press conference. “We’re talking about over 4,400 lost jobs, more than $507 million in lost wages, and in terms of total economic output in California, more than $1.63 billion lost annually to other jurisdictions.”

If the bill passes on the Assembly Floor—the vote is scheduled for May 29—it would then head to the State Senate. If it passes there, it would go to Governor Newson, and if signed, the bill would become law on Jan. 1.

Schultz recently discussed the bill and answered questions during a May 8 Town Hall organized by California Post Alliance (CAPA), sponsor of the bill. During the meeting, CAPA president Marielle Abaunza, who is executive vp of business development at Signature Post, announced that the Television Academy has endorsed the bill.

Abaunza urged those in attendance to become members and donate to CAPA, a 501(c)(6) nonprofit, to reach needed funding to support AB 2319. CAPA acknowledged and thanked supporters, led by Platinum members Encompass, Lionsgate and Trevanna Post, and Gold member MTI Film.

According to MPEG, Guild members sent an estimated 3200 letters to the Assembly committees as part of its Political Engagement Committee’s campaign to rally bill support.