It’s official—AB1138, the bill aiming to supercharge California’s Film & Television Tax Credit program, cleared a key hurdle today in Sacramento. The State Assembly’s Arts, Entertainment, Sports and Tourism Committee voted the bill out with seven “yes” votes, pushing it one step closer to the finish line.

What’s at stake? A major rewrite of California’s incentive structure—one that would raise the annual cap from $330 million to $750 million and boost individual project credits from 20% to as much as 35% for qualifying spend in Los Angeles. In other words, California is making a bold play to win back the productions it’s lost to Georgia, the UK, and a long list of states and countries offering deeper, faster rebates.

This comes on the heels of an industry-wide wake-up call. With over 100,000 letters sent to lawmakers and high-profile voices like Ben Affleck sounding the alarm, the bill is being called by some “motion picture’s last hope for California.”

“This isn’t just about big studios,” said Assemblymember Tim Lackey. “It’s about saving middle-class jobs, local vendors, and the industry workers who built Hollywood in the first place.”

Up next: the bill moves to the full Assembly for consideration, while its twin, SB630, is expected to advance from the Senate Revenue and Taxation Committee tomorrow.

For an industry bleeding jobs and watching productions head overseas or out-of-state, today’s vote signals something rare in California film policy—a serious move toward change. And with a potential 35% rebate on the table, it might just be the tipping point LA’s production community has been waiting for.