Los Angeles has spent two decades watching post-production work — editing, sound mixing, visual effects, color grading, scoring — drift away to other states and countries, even when the film or show itself was shot right here at home. A new state law signed this month by Governor Gavin Newsom takes direct aim at that trend, and it could matter a lot to the small post houses and freelancers who keep Los Angeles running behind the camera.
Assembly Bill 2319, authored by Assemblymember Nick Schultz of Burbank, creates California’s first stand-alone tax credit specifically for post-production work. What sets it apart from the state’s existing film and TV production tax credit is that it applies even when the actual filming happened somewhere else entirely. A production shot in Vancouver, Atlanta, or anywhere outside California can still bring its editing, visual effects, sound mixing, and scoring work back to a Burbank or Hollywood facility and qualify for the credit.
The credit covers 35% to 50% of qualified post-production spending, with the state setting aside an initial $10 million to fund it starting January 1, 2027 — scaled back from an original $100 million proposal, but notable as a first step. Supporters, including Schultz, framed the bill around a blunt statistic: the LA area lost roughly 1,874 direct post-production jobs between 2005 and 2025 as studios chased cheaper labor and richer incentives in other states and countries.
For the small and mid-size post houses, editors, colorists, sound engineers, and VFX artists who make up a large share of LA’s entertainment-adjacent small business economy, this is a meaningful signal even at a modest starting budget. It’s the first time the state has treated post-production as its own economic category worth protecting, rather than an afterthought to physical production incentives.
The practical takeaway for local business owners: if you run or work at a post facility, editing bay, sound stage, or freelance in any post-production discipline anywhere from Burbank to Downtown LA, it’s worth watching how the California Film Commission rolls out application details ahead of the January 2027 start date. Businesses that understand the qualification rules early will be best positioned to capture work that might otherwise head out of state.
It’s a small credit in dollar terms next to the industry’s overall size, but it’s a clear statement that Sacramento sees keeping this work in Los Angeles as worth fighting for — and that matters for a local economy built on it.
Source: NBC Los Angeles
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