CA AB1138

Increases California's annual film and television tax credit allocation from $330 million to $750 million starting fiscal year 2025-26, and raises credit percentages from 20-25% to 35-40% of qualified expenditures for productions filmed in the state

Expands eligible productions to include animated films, live action and animated series with episodes averaging 20+ minutes, and large-scale competition shows (excluding traditional reality, game shows, and talk shows), with a minimum $1 million production budget requirement

Allows single member limited liability companies disregarded for tax purposes to assign motion picture credits to affiliated corporations, and expands the definition of "qualified taxpayer" to include such entities

Requires the California Film Commission to expand the Career Pathways Program by establishing an application process for nonprofit organizations to provide technical skills training for underserved communities, funded by a 0.5% fee on approved credits

Adds veteran status and ZIP Code data to diversity workplan and assessment requirements, and allows productions meeting diversity goals to receive up to 4 percentage points in additional credits