Momentum continues to build behind California Assembly Bill (“AB”) 2403, AICP-sponsored legislation that would establish a commercial production tax credit program in California. Following strong support in the Assembly Revenue & Taxation Committee, the bill has now successfully passed out of the Assembly Appropriations Committee and is advancing to a full vote of the Assembly.
Authored by Assemblymember Sade Elhawary of Los Angeles, AB 2403 seeks to restore California’s competitiveness in the commercial production sector as projects increasingly migrate to other states and countries offering targeted incentives.
At the April 20 hearing before the Assembly Revenue & Taxation Committee, Assemblymember Elhawary emphasized the importance of preserving California’s production economy and workforce.
“California has long been a hub for commercial production. We have the crews, the infrastructure, and the talent that built this industry. But we're losing that work,” said Elhawary. “That means fewer jobs for skilled workers, fewer opportunities for people trying to get their foot in the door, and less investment in our local communities.” She concluded that AB 2403 “protects good paying middle class jobs and the workers who depend on them.”
AICP Vice President of Labor Relations and External Affairs David Michael González delivered key witness testimony in support of the measure on behalf of the commercial production industry. He highlighted the uniquely mobile nature of commercial production and the urgent need for California to establish a competitive framework.
“Commercials are often described as the ‘bread and butter’ of local film economies,” González testified. “While individual projects may be short, they are more frequent and consistent than longer form projects. They bring steady work to crews, vendors, and small businesses across the entire state — not just in traditional production hubs.”
He further emphasized that California’s competitive disadvantage has become increasingly pronounced as other jurisdictions aggressively court commercial production work.
The hearing also featured compelling testimony from Rudy Reyes, a member of IATSE Local 728 and the Restorative Academic Mentorship Program (“RAMP”). Reyes underscored the sharp contraction of commercial production work in California in recent years.
“I remember a time when I would do two to three Super Bowl commercials per year. Then in 2024 and 2025, I did no Super Bowl commercials,” Reyes stated, noting that productions increasingly “go elsewhere to states and countries that often offer even modest financial advantages.”
The Entertainment Union Coalition (“EUC”) — representing the entertainment industry’s unions and guilds — also formally supported the bill, reinforcing the importance of commercial production as a source of continuous employment and benefit contributions for workers between larger film and television projects.
With AB 2403 now advancing to a full vote of the Assembly, the bill enters a critical next phase in the legislative process before moving to consideration in the Senate. Sustained stakeholder engagement is paramount as the measure progresses through the Legislature.
Click here to submit (or resubmit) a letter in support of AB 2403.
For questions or concerns about AB 2403, contact David Michael González, VP, Labor Relations & External Affairs at davidg@aicp.com.