Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 756Introduced by Senator Smallwood-CuevasFebruary 21, 2025 An act to amend Section 23698.1 of the Revenue and Taxation Code, relating to taxation. add Section 14998.14 to the Government Code, relating to motion picture tax credits.LEGISLATIVE COUNSEL'S DIGESTSB 756, as amended, Smallwood-Cuevas. Corporation Tax Law: credit: motion picture. California Film Commission: motion picture tax credits: tracking and compliance program.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. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state.This bill would correct erroneous cross-references in the above-described motion picture credit provision within the Corporation Tax Law.This bill, upon appropriation by the Legislature, would require the California Film Commission to establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits. The bill would require credit recipients, for taxable years beginning on or after January 1, 2026, to submit detailed compliance reports to the California Film Commission that contain, among other things, demographic data of employees and an independent economic impact analysis, conducted every 2 years, that assesses the impact of the credits, including the impact on job creation and retention. The bill would require the commission to impose a monetary penalty on a production that fails to submit the report or falsifies its data.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 14998.14 is added to the Government Code, to read:14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 756Introduced by Senator Smallwood-CuevasFebruary 21, 2025 An act to amend Section 23698.1 of the Revenue and Taxation Code, relating to taxation. add Section 14998.14 to the Government Code, relating to motion picture tax credits.LEGISLATIVE COUNSEL'S DIGESTSB 756, as amended, Smallwood-Cuevas. Corporation Tax Law: credit: motion picture. California Film Commission: motion picture tax credits: tracking and compliance program.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. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state.This bill would correct erroneous cross-references in the above-described motion picture credit provision within the Corporation Tax Law.This bill, upon appropriation by the Legislature, would require the California Film Commission to establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits. The bill would require credit recipients, for taxable years beginning on or after January 1, 2026, to submit detailed compliance reports to the California Film Commission that contain, among other things, demographic data of employees and an independent economic impact analysis, conducted every 2 years, that assesses the impact of the credits, including the impact on job creation and retention. The bill would require the commission to impose a monetary penalty on a production that fails to submit the report or falsifies its data.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 26, 2025
Amended IN Senate March 26, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 756
Introduced by Senator Smallwood-CuevasFebruary 21, 2025
Introduced by Senator Smallwood-Cuevas
February 21, 2025
An act to amend Section 23698.1 of the Revenue and Taxation Code, relating to taxation. add Section 14998.14 to the Government Code, relating to motion picture tax credits.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 756, as amended, Smallwood-Cuevas. Corporation Tax Law: credit: motion picture. California Film Commission: motion picture tax credits: tracking and compliance program.
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. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state.This bill would correct erroneous cross-references in the above-described motion picture credit provision within the Corporation Tax Law.This bill, upon appropriation by the Legislature, would require the California Film Commission to establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits. The bill would require credit recipients, for taxable years beginning on or after January 1, 2026, to submit detailed compliance reports to the California Film Commission that contain, among other things, demographic data of employees and an independent economic impact analysis, conducted every 2 years, that assesses the impact of the credits, including the impact on job creation and retention. The bill would require the commission to impose a monetary penalty on a production that fails to submit the report or falsifies its data.
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. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state.
This bill would correct erroneous cross-references in the above-described motion picture credit provision within the Corporation Tax Law.
This bill, upon appropriation by the Legislature, would require the California Film Commission to establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits. The bill would require credit recipients, for taxable years beginning on or after January 1, 2026, to submit detailed compliance reports to the California Film Commission that contain, among other things, demographic data of employees and an independent economic impact analysis, conducted every 2 years, that assesses the impact of the credits, including the impact on job creation and retention. The bill would require the commission to impose a monetary penalty on a production that fails to submit the report or falsifies its data.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 14998.14 is added to the Government Code, to read:14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 14998.14 is added to the Government Code, to read:14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
SECTION 1. Section 14998.14 is added to the Government Code, to read:
### SECTION 1.
14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:(A) Job creation and retention resulting from the credits.(B) State and local revenue impacts.(C) Growth in production-related industries.(D) Disparities in employment or wages among diverse workforce segments.(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.
14998.14. (a) The California Film Commission shall establish and implement a comprehensive tracking and compliance program to monitor the economic impact of productions receiving motion picture tax credits pursuant to Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code.
(b) The program shall require credit recipients, for taxable years beginning on or after January 1, 2026, and annually thereafter, to submit detailed compliance reports to the California Film Commission that include, but are not limited to, the following information:
(1) Demographic data for all hired employees, including race, ethnicity, gender, and veteran status.
(2) Geographic data for employees primary residences by ZIP Code to assess local hiring impacts.
(3) Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.
(4) An independent economic impact analysis, to be conducted every two years, that assesses all of the following:
(A) Job creation and retention resulting from the credits.
(B) State and local revenue impacts.
(C) Growth in production-related industries.
(D) Disparities in employment or wages among diverse workforce segments.
(c) The commission shall impose a monetary penalty, in an amount determined by the severity of noncompliance, on a production that fails to submit the report specified in subdivision (b) or that falsifies data in the report specified in subdivision (b).
(d) The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. The report shall be made publicly available on the commissions website.
(e) The commission may adopt regulations necessary for implementing this section, including guidelines for data collection, enforcement mechanisms, and periodic review processes.
(f) This section shall become operative upon an appropriation by the Legislature for purposes of the program.