California bills · 2025-2026 Regular Session
California AB 2403
Income tax: credits: commercial production.
- Introduced
- In committee
- Passed House
- Passed Senate
- To Governor
- Became law
Sponsors
- Elhawary (Democratic)
Cosponsors (5)
- Schiavo (Democratic)
- Garcia (Democratic)
- Harabedian (Democratic)
- Mark González (Democratic)
- Quirk-Silva (Democratic)
Summary
Official abstract published by the California legislature· summary
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.
This bill would take effect immediately as a tax levy.
Text versions
- 07/02/26 - Amended Senate· Jul 2, 2026
- 04/13/26 - Amended Assembly· Apr 13, 2026
- 03/19/26 - Amended Assembly· Mar 19, 2026
- 02/20/26 - Introduced· Feb 20, 2026
- AB2403
Roll-call votes
State vote data last updated Oct 16, 2026, 12:24 AM.
| Date | Vote | Result | Your legislators |
|---|---|---|---|
| Aug 3, 2026 Senate | Placed on suspense file | pass | Set your home in California to see |
| Jun 30, 2026 Senate | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | pass | Set your home in California to see |
| Jun 24, 2026 Senate | Do pass, but first be re-referred to the Committee on [Public Safety] | pass | Set your home in California to see |
| May 26, 2026 House | AB 2403 Elhawary Assembly Third Reading | pass | Set your home in California to see |
| May 14, 2026 House | Do pass. | pass | Set your home in California to see |
| Apr 27, 2026 House | Do pass and be re-referred to the Committee on [Appropriations] | pass | Set your home in California to see |
Actions
- Aug 13, 2026 · Senate
In committee: Held under submission. - Aug 3, 2026 · Senate
In committee: Referred to APPR. suspense file. - Jul 2, 2026 · Senate
Read second time and amended. Re-referred to Com. on APPR. - Jul 1, 2026 · Senate
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 30). - Jun 24, 2026 · Senate
From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on PUB. S. - Jun 10, 2026 · Senate
Referred to Coms. on REV. & TAX. and PUB. S. - May 27, 2026 · Senate
In Senate. Read first time. To Com. on RLS. for assignment. - May 26, 2026 · House
Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3.) - May 18, 2026 · House
Read second time. Ordered to third reading. - May 14, 2026 · House
From committee: Do pass. (Ayes 14. Noes 0.) (May 14). - May 14, 2026 · House
Coauthors revised. - May 6, 2026 · House
In committee: Set, first hearing. Referred to APPR. suspense file. - Apr 28, 2026 · House
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 27). Re-referred to Com. on APPR. - Apr 28, 2026 · House
Coauthors revised. - Apr 20, 2026 · House
In committee: Set, first hearing. Referred to REV. & TAX. suspense file. - Apr 14, 2026 · House
Re-referred to Com. on REV. & TAX. - Apr 13, 2026 · House
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. - Apr 13, 2026 · House
In committee: Hearing postponed by committee. - Mar 23, 2026 · House
Re-referred to Com. on REV. & TAX. - Mar 19, 2026 · House
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. - Mar 19, 2026 · House
Referred to Com. on REV. & TAX. - Feb 21, 2026 · House
From printer. May be heard in committee March 23. - Feb 20, 2026 · House
Read first time. To print.