Assemblymember Sade Elhawary (D-57th Assembly District) has announced plans to introduce legislation creating California’s first-ever Commercial Production Tax Credit Program, aimed at bringing commercial advertising production–and the jobs it creates–back to the Golden State.
The legislation would incentivize national and international brands to film commercials in California, strengthening the state’s creative economy and expanding access to good-paying production jobs.
“We know what happens when we invest in our people,” said Assemblymember Elhawary. “But while other states stepped up to keep these jobs, we fell behind. This bill brings commercial production back to California, creating good jobs, supporting local crews, and opening doors into the industry.”
Historically, nearly half of all nationally aired commercials were produced in California. That share has dropped sharply over the last decade as other states expanded production incentives. According to FilmLA, on-location commercial shoot days in Los Angeles have declined by more than 30 percent in the last five years. Meanwhile, more than 20 states (including New York, Georgia, Texas, and Illinois) now offer tax incentives for commercial production.
“Advertising is the engine that drives business locally, nationally and globally” said Matt Miller, president and CEO of the Association of Independent Commercial Producers. “For decades, California has been the most dominant market in the world in the production of advertising, employing numerous people and contributing to building a healthy and strong infrastructure for all entertainment media production. Other production centers have been chipping away at this lucrative sector of the business; it is the right time for California to aggressively compete to regain lost jobs.”
Modeled after successful programs in other states, Elhawary’s proposal would establish a $15 million targeted tax credit for commercial productions filmed in California. Eligible productions could receive:
• Up to 20% of qualified production expenses for shoots in major metropolitan areas
• Up to 30% of qualified production expenses for shoots outside those regions
The program is designed to increase local hiring of crew and talent, boost demand for California-based vendors and facilities, and drive spending across related industries such as hospitality, transportation, and small businesses, while aligning with the state’s existing film and television incentive framework.
“This is about jobs and community impact,” Elhawary added. “Commercials are filmed across California, and the economic benefits should stay here too. Acting now means more work for local crews and more stability for communities across the state.”
Elhawary’s bill will be formally introduced later this session, with additional details to be released in the coming weeks.
Assemblymember Elhawary represents the 57th Assembly District, including the communities of Exposition Park, South Los Angeles, and Downtown Los Angeles, within Los Angeles County.
