AB-2403 • 2026

Income tax: credits: commercial production.

Crime Education Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Elhawary
Last action: 2026-06-10
Official status: Referred to Coms. on REV. & TAX. and PUB. S.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Income tax: credits: commercial production.

AB 2403, as amended, Elhawary.

What This Bill Does

AB 2403, as amended, Elhawary.
Income tax: credits: commercial production.
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.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-10 California Legislative Information
Referred to Coms. on REV. & TAX. and PUB. S.
2026-05-27 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-05-26 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3.)
2026-05-18 California Legislative Information
Read second time. Ordered to third reading.
2026-05-14 California Legislative Information
From committee: Do pass. (Ayes 14. Noes 0.) (May 14).
2026-05-14 California Legislative Information
Coauthors revised.
2026-05-06 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2026-04-28 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 27). Re-referred to Com. on APPR.
2026-04-28 California Legislative Information
Coauthors revised.
2026-04-20 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-04-14 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-04-13 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-04-13 California Legislative Information
In committee: Hearing postponed by committee.
2026-03-23 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-03-19 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-03-19 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2403, as amended, Elhawary.
Income tax: credits: commercial production.
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,
and
or that utilizes generative artificial intelligence, automated technologies, or autonomous vehicles in a manner that replaces or diminishes 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.

Current Bill Text

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