{"id":446759,"date":"2026-08-29T02:18:09","date_gmt":"2026-08-29T02:18:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/446759\/"},"modified":"2026-08-29T02:18:09","modified_gmt":"2026-08-29T02:18:09","slug":"california-budget-trailer-bill-addresses-hollywood-tax-credit-issue","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/446759\/","title":{"rendered":"California Budget Trailer Bill Addresses Hollywood Tax Credit Issue"},"content":{"rendered":"

\n\tAfter failing to secure an exemption for the entertainment industry, stakeholders have made a last-minute proposal to mitigate the impact of California\u2018s new business tax credit regulations<\/a> on Hollywood.<\/p>\n

\n\tState Assemblymember Rick Chavez Zbur and Senator Ben Allen on Friday introduced AB\/SB 186, which if passed would exempt indie projects from the state\u2018s new business tax credit caps and allow all productions with state tax credits to monetize more of their refunds, faster.<\/p>\n

\n\t\u201cLast year, we took action to get families back to work and jumpstart the State\u2019s film and television industry,\u201d Senator Allen said in a statement. \u201cHowever, we\u2019re at risk of losing this momentum, and all the jobs we\u2019ve created over the last year, if we don\u2019t act by the end of the month. I\u2019m grateful for the support from Governor Newsom, Assemblymember Zbur and the legislative leadership to help us find a path forward that will retain California\u2019s status as the global hub of entertainment.\u201d<\/p>\n

\n\tStakeholders say a state budget bill that was signed into law<\/a> on June 29 has jeopardized the celebrated increase to California\u2018s film and television tax credit increase to $750 million in 2025. That 2025 boost to the program, the result of some serious lobbying from Hollywood, more than doubled the amount of funding that could be allocated to giving productions tax relief. <\/p>\n

\n\tBut budget bill SB 122 threatened its viability by extending previously temporary caps on the use of business tax credits over $5 million a year. The budget bill also made the ceiling on using credits over $5 million a year, or 70 percent of a taxpayer\u2019s liability, whichever is greater, permanent starting in 2030.<\/p>\n

\n\tThe new trailer bill wouldn\u2018t give major productions a pass from these caps, but it would enhance the perks for productions that choose to monetize a portion of their tax credits rather than put them towards their tax liability. (The ability to monetize a portion of the tax credits is relatively new, having been signed into law in 2025). The bill allows production to monetize 95 percent of their refund, as opposed to the previous 90 percent, and speeds up the collection period from five to two years.<\/p>\n

\n\tThe bill additionally would push back the expiration date for credits earned before 2025\u2018s changes to the program for productions actively shooting in California. Productions recently awarded California tax credits would have 15 years to use them, rather than the previous nine. <\/p>\n

\n\tThe trade organization for major studios and streamers, the Motion Picture Association, supports the bill alongside the Entertainment Union Coalition and the Producers Guild of America.<\/p>\n

\n\tThe introduction of AB\/SB 186 follows a major lobbying campaign from unions and the MPA<\/a>, as well as a letter-writing campaign from union members, to oppose the inclusion of the entertainment industry in the business tax credit caps. As of August 14, some 350,000 letters had been sent to legislators airing industry members\u2018 concerns about what the state budget bill could mean for production in the state.<\/p>\n

\n\tWhile Zbur and Allen\u2018s bill addresses concerns over productions realizing the full value of their credits, it may not do much to restore trust in policymakers\u2018 approach to the state\u2018s film incentives program. Stakeholders have expressed concern that the sudden change to the program implemented this year could scare companies seeking stability and certainty as they make long-term production plans. <\/p>\n

\n\tNow, legislators will have to scramble to pass the bill before the legislative session adjourns on August 31. <\/p>\n

\n\t\u201cI\u2019m pleased that we have identified a path forward that would help protect the progress we\u2019ve made to strengthen California\u2019s film and television industry,\u201d Assemblymember Zbur said in a statement. He added of the bill, \u201cIt does not address every challenge facing this highly competitive and mobile industry, and there is more work to do in the coming months, but this is an important step toward ensuring film and television remain a cornerstone of California\u2019s economy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"After failing to secure an exemption for the entertainment industry, stakeholders have made a last-minute proposal to mitigate…\n","protected":false},"author":2,"featured_media":446760,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8,845,84212,70326],"class_list":["post-446759","post","type-post","status-publish","format-standard","has-post-thumbnail","category-california","tag-california","tag-california-headlines","tag-california-news","tag-labor","tag-mpa","tag-production-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/446759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=446759"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/446759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/446760"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=446759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=446759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=446759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}