DGA Monthly

8 I D G A M O N T H L Y DGA Supports New California Bill Aimed at Commercial Production In February 2026, California Assembly Bill 2403 (AB 2403), a measure proposing a new tax credit to incentivize commercial film production in the state, was introduced to the state legislature. Authored by California Assemblymember Sade Elhawary with co-authors Robert Garcia, Mark Gonzalez, John Harabedian, Sharon Quirk-Silva and Pilar Schiavo, AB 2403 would establish a California Commercial Production Tax Credit Program with a capped annual allocation of $15 million. The bill is seeking to provide a 20 percent credit for qualified production costs incurred within the Los Angeles studio zone, and a 30 percent credit for qualified production costs incurred outside the zone, thereby encouraging regional economic development across California. Supported by the DGA, the Association of Independent Commercial Producers and the Entertainment Union Coalition, AB 2403 includes: • A focus on California jobs where 75% of the production must take place, • AI protections for workers and limits on what can be classified as a "commercial," • Strong labor standards to ensure industry standard wages and pension and health benefits to workers on productions seeking the tax credit. These provisions were critical to labor support for the bill. AB 2403 passed out of the Assembly in May and has received strong support as it makes its way through the state Senate. Currently the bill remains in the Senate Appropriations Committee until the state legislature returns in August. The bill is modeled after the N.Y. commercial incentive program. and is separate and apart from California's expanded tax credit program for film and television. For information on AB 2403 visit the California Legislative Information website at https://leginfo.legislature.ca.gov. California's Film and Television Tax Credit Program Reaps Benefits In 2025, following months of extensive involvement from the DGA, California Governor Gavin Newsom signed into law a bill that increases and modernizes the state's Film and Television Tax Credit Program. This legislation more than doubles the program's annual funding — from $330 million to $750 million — and introduces key updates designed to keep production, below-the-line jobs, and investments rooted in California. The expanded film incentive program helped lure two-time DGA Award-winning and Lifetime Achievement Award recipient Ang Lee out of a seven-year filmmaking hiatus to shoot his new feature, Gold Mountain, an epic set during the California Gold Rush. The production is part of a multiple film and television package funded by the expanded state tax credit which to date includes 170 projects designed to bring $6.6 billion in economic activity and nearly 35,000 cast and crew jobs across California. "California has long set the standard for entertainment production, creating good-paying jobs and showcasing the creativity and innovation that define the Golden State," said Governor Newsom. "The first year of the expanded tax credit program is already delivering results — generating billions in economic activity, creating opportunities for businesses and the workforce, and bringing more productions home to California." For information on California's expanded tax credit program visit the California Film Commission website at https://film.ca.gov. The DGA continues to advocate for improvements to state incentive programs and the To learn more about the DGA's efforts on Production Incentives, photo by Betina La Plante California Governor Gavin Newsom visits Director Ang Lee on the set of Lee's new feature, Gold Mountain. WORKING TO BRING PRODUCTION HOME

• Cover