Assembly Bill (“AB”) 2403 — the proposal to create a California production tax credit program for commercials — is entering a critical phase in the legislative process. For those tracking its progress, the next two weeks will determine whether the bill moves forward this year.
Where Things Stand
AB 2403 is scheduled to be heard in the Assembly Revenue & Taxation Committee on April 20. Because the bill creates a tax credit and carries a fiscal impact, it is expected to be placed on the committee’s Suspense File, a standard step for bills with budget implications.
The key date to watch is April 27, when the committee will vote on all bills held on suspense.
Why April 27 Matters
The Revenue & Taxation Suspense vote is the first major gatekeeper for AB 2403. On that date, the committee will decide whether to:
Advance the bill, allowing it to continue through the legislative process, or
Hold the bill, which would effectively stop it for the year
What Happens If the Bill Advances
If AB 2403 is approved out of the Rev/Tax Suspense File, it will follow a more familiar path:
Assembly Appropriations Committee
The bill will be reviewed for broader fiscal impacts and is likely to be placed on another suspense file before a vote
Assembly Floor Vote
If released from Appropriations, the full Assembly will vote on the bill
From there, the process repeats in the Senate:
Policy committee review
Senate Appropriations (and suspense)
Senate Floor vote
If the Senate amends the bill, it must return to the Assembly for concurrence before heading to the Governor.
A Note on Timing
Unlike most legislation, AB 2403 is a tax levy bill, which means it is not subject to the standard legislative deadlines. In practical terms, that gives the bill more runway to move through the process later into the session—assuming it clears its early fiscal hurdles.
What This Means for Commercial Production Stakeholders
The next decision point on April 27 is pivotal. If AB 2403 advances, it remains a viable vehicle for bringing commercial production into California’s tax credit framework. If it does not, the conversation likely resets for next year.
For questions about AB 2403, contact David Michael González, Vice President of Labor Relations & External Affairs, at davidg@aicp.com.