After months of intensive deliberation and haggling, Californias State Assembly and Senate have passed a bill that significantly expands Californias film and television tax credit program and sent the proposed legislation to Gov. Gavin Newsoms desk.

The bill, AB 1138, is poised to raise the states base credit rate for productions to 35 percent, with shoots relocating from other states and countries eligible for up to 40 percent. The legislation also expands the kinds of productions that are allowed to qualify to include animation, 20-minute television programs and large-scale competition series with budgets of at least $1 million. The legislatures approval comes just one day after the film and television tax credit program received a major cash boost, with Gov. Newsom signing into a law an allocation in the state budget to increase the programs cap from $330 million to $750 million.

The state Senate, the last stop for the bill before it heads to Newsom, passed the measure 32 to two in a Thursday morning session. Holdouts were Sen. Marie Alvarado-Gil and Sen. Roger Niello, both Republicans.

Assemblymember Rick Chavez Zbur of Hollywood, who spearheaded the bill in the Assembly, said the move represented a comeback for workers, a comeback for small businesses, and a comeback for the beating heart of Californias creative economy.

The passage comes just days before a July 7 application deadline for productions seeking to take advantage of California tax credits.

Statements from production advocates and unions that had pounded the pavement in Sacramento to support the measure poured in on Thursday.

In her celebration of the legislation, SAG-AFTRA president Fran Drescher called for a Hot Production Summer. The Entertainment Union Coalition said that these measures going into effect would mean we can look forward to our members getting back to work where they live (and in a manner consistent of labor organizations, they called on the studios to commit to making that happen).

More to come.