California Budget Trailer Bill Expands Hollywood Tax Credits and Faster Refunds

California lawmakers introduced AB/SB 186 as part of a budget trailer bill to blunt the impact of new caps on the state’s $750 million film/TV tax credit program. The measure would exempt indie productions from the caps, allow productions to monetize 95% of their refunds (up from 90%), and shorten the refund timeline from five years to two. It would also extend the expiration window for credits earned before 2025 to 15 years. Backed by the MPA, unions, and Governor Newsom, the proposal aims to preserve California’s status as a Hollywood hub, but critics warn broader caps and policy changes still loom as a risk as lawmakers race to adjourn.