AB 2403: Income tax: credits: commercial production.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including numerous motion picture credits.

This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against the taxes imposed by those laws to a qualified taxpayer that produces qualified commercials, as defined, in the state in an amount equal to 20% or 30% of the qualified production costs in excess of $500,000 that are attributable to the production of a qualified commercial, as specified. The bill would exclude any commercial that is created entirely by generative artificial intelligence, as specified, or that utilizes generative artificial intelligence or autonomous vehicles in a manner that replaces the job functions customarily performed by a human worker in the production. The bill would require the qualified commercial to adhere to specified labor standards. The bill would require the California Film Commission to establish an application process and allocate the credits on or after July 1 each year, in accordance with certain requirements. The bill would limit the aggregate amount of credits that may be allocated for a fiscal year under these provisions to $15,000,000. The bill would require specified certifications under penalty of perjury. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Sponsors

Sponsors by party (alphabetical): Democratic 6

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 13, 2026In committee: Held under submission.
2. August 3, 2026In committee: Referred to APPR. suspense file.
3. July 2, 2026Read second time and amended. Re-referred to Com. on APPR.
4. July 1, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 30).
5. June 24, 2026From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on PUB. S.
6. June 10, 2026Referred to Coms. on REV. & TAX. and PUB. S.
7. May 27, 2026In Senate. Read first time. To Com. on RLS. for assignment.
8. May 26, 2026Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3. Page 5321.)
9. May 18, 2026Read second time. Ordered to third reading.
10. May 14, 2026Coauthors revised.
11. May 14, 2026From committee: Do pass. (Ayes 14. Noes 0.) (May 14).
12. May 6, 2026In committee: Set, first hearing. Referred to APPR. suspense file.