VFX-sector fragility makes tax policy as important as automation

Tippett Studio’s bankruptcy and closure underscores pressure on specialist VFX businesses amid consolidation and global production-tax competition. California’s AB 2319 has advanced through the Senate with a proposed 35%–50% post-production credit, initially funded at $10 million while advocates seek $100 million; final approval, implementation, and competitive impact remain open. The Last Earthling’s LED-volume production adds a regional virtual-production case, but its reported savings are filmmaker-sourced and unverified.