California 20252026 Regular Session Status: Introduced 1 D cosponsors

AB 2403 — Income tax: credits: commercial production.

Last action — In committee: Held under submission.

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  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the Assembly. Introduced February 20, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Prognosis

Stalled 28% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • Introduced

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill provides tax credits for producing commercials in California, excluding those made by AI.

This bill allows qualified taxpayers to receive tax credits for producing commercials in California, with rates of 20% or 30% on costs above $500,000. It specifically excludes commercials created entirely by generative AI and requires adherence to labor standards.

What this means for you
  • Workers: This bill emphasizes job retention by excluding projects that replace human roles with AI.
  • Small Business: Small businesses producing commercials may benefit from new tax credits to offset production costs.

Summary

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, or that utilizes generative artificial intelligence or autonomous vehicles in a manner that replaces 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.

Bill Text

Action History

  1. In committee: Held under submission.

  2. In committee: Referred to APPR. suspense file.

  3. Read second time and amended. Re-referred to Com. on APPR.

  4. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 30).

  5. From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on PUB. S.

  6. Referred to Coms. on REV. & TAX. and PUB. S.

  7. In Senate. Read first time. To Com. on RLS. for assignment.

  8. Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3.)

  9. Read second time. Ordered to third reading.

  10. From committee: Do pass. (Ayes 14. Noes 0.) (May 14).

  11. Coauthors revised.

  12. In committee: Set, first hearing. Referred to APPR. suspense file.

  13. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 27). Re-referred to Com. on APPR.

  14. Coauthors revised.

  15. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  16. Re-referred to Com. on REV. & TAX.

  17. In committee: Hearing postponed by committee.

  18. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  19. Re-referred to Com. on REV. & TAX.

  20. Referred to Com. on REV. & TAX.

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  22. From printer. May be heard in committee March 23.

  23. Read first time. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 3 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

Passed 5 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 5000
Republican 0001
Total 5001
% of votes cast 83%0%0%17%
How each member voted (6)
Member Party Vote
Arreguín, Jesse Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Pérez, Sasha Renée Democratic Yea
Wiener, Scott D. Democratic Yea
Seyarto, Kelly Republican Not Voting

Official roll call →

AB 2403 Elhawary Assembly Third Reading

Passed 70 Yea · 3 Nay · 7 Other
Party YeaNayPresentNot Voting
Democratic 55004
Republican 14303
Unaffiliated 1000
Total 70307
% of votes cast 88%4%0%9%
How each member voted (80)
Member Party Vote
Ávila Farías — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Ahrens, Patrick Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Carrillo, Juan Democratic Yea
Connolly, Damon Democratic Yea
Elhawary, Sade Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Not Voting
Garcia, Robert Democratic Yea
Gipson, Mike A. Democratic Yea
González, Mark Democratic Yea
Haney, Matt Democratic Yea
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Krell, Maggy Democratic Yea
Lee, Alex Democratic Not Voting
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Not Voting
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Patel, Darshana R. Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Ransom, Rhodesia Democratic Yea
Rivas, Robert Democratic Yea
Rodriguez, Celeste Democratic Not Voting
Rodriguez, Michelle Democratic Yea
Rogers, Chris Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Soria, Esmeralda Democratic Yea
Stefani, Catherine Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Castillo, Leticia Republican Yea
Chen, Phillip Republican Yea
Davies, Laurie Republican Yea
DeMaio, Carl Republican Nay
Dixon, Diane Republican Not Voting
Ellis, Stan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Nay
Gonzalez, Jeff Republican Yea
Hadwick, Heather Republican Nay
Hoover, Josh Republican Yea
Johnson, Natasha Republican Yea
Lackey, Tom Republican Not Voting
Macedo, Alexandra Republican Not Voting
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Yea
Wallis, Greg Republican Yea

Official roll call →

Do pass.

Passed 14 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 11000
Republican 3001
Total 14001
% of votes cast 93%0%0%7%
How each member voted (15)
Member Party Vote
Aguiar-Curry, Cecilia M. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Fong, Mike Democratic Yea
González, Mark Democratic Yea
Krell, Maggy Democratic Yea
Pacheco, Blanca Democratic Yea
Pellerin, Gail Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Wicks, Buffy Democratic Yea
Dixon, Diane Republican Not Voting
Hoover, Josh Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Yea

Official roll call →

Subjects

taxation labor technology
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Frequently asked questions

What does AB 2403 do?
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, or that utilizes generative artificial intelligence or autonomous vehicles in a manner that replaces 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.
Who sponsors AB 2403?
AB 2403 is sponsored by Elhawary, Sade (Democratic).
What is the current status of AB 2403?
This bill has been introduced in the Assembly. Introduced February 20, 2026. It must pass committee before a floor vote.
Where can I track AB 2403?
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