CA SB 186
enactedIncome taxes: film tax credits.
California · 2025-2026 Regular Session · upper
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Quick answers
Did CA SB 186 pass?
Yes. CA SB 186 has been enacted into law. Latest recorded action (2026-09-19): Chaptered by Secretary of State. Chapter 344, Statutes of 2026.
What is CA SB 186 about?
(1) The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws, including various motion picture credits, commonly referred to as motion picture credit 1.0, 2.0, 3.0, and 4.0, and the certified studio credit, to be allocated by the California Film Commission in differing amounts equal to specified percentages of the qualified expenditures of a qualified motion picture in this state. Existing law allows those credits to be sold if they are allocated to independent films, as defined. Existing law allows those credits to be carried forward for 9 years in the case that the credit exceeds the tax owed, as provided. Existing law allows a qualified taxpayer to elect to be paid a refund equal to 90% of the total refundable amount, as specified, over a period of 5 years if the amount allowable as a credit under motion picture credit 4.0 exceeds the qualified taxpayer's tax liability for the taxable year, and allows the excess to be carried over, as specified. Existing law allows these refunds from the Tax Relief and Refund Account, which is a continuously appropriated fund. This bill would expand the carry forward provisions of motion picture credit 2.0 and 3.0 to 15 years. The bill would require the qualified taxpayer, or a related company, as specified, to be an active participant, as defined, to carry the credit forward for any of the 10th through the 15th years, inclusive. The bill would also increase the total refundable amount under motion picture credit 4.0 from 90% to 95%, and would make the refund payable over 2 years instead of over 5 years. By increasing the amounts refunded from a continuously appropriated fund, the bill would make an appropriation. (2) Existing law, for taxable years beginning on or after January 1, 2024, and before January 1, 2030, limits the total tax reduction by all business credits, as defined, to $5,000,000 per taxable year, except as specified. Existing law, for taxable years beginning on or after January 1, 2030, similarly applies a business credit limit of 70% of the total taxes imposed or $5,000,000, whichever is greater, except as specified. This bill would, for taxable years beginning on or after January 1, 2027, exempt credits that have been sold from the business credit limit described above. (3) This bill would make legislative findings and declarations related to a gift of public funds. (4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Who sponsors CA SB 186?
Committee on Budget and Fiscal Review is the primary sponsor of CA SB 186.
Description
(1) The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws, including various motion picture credits, commonly referred to as motion picture credit 1.0, 2.0, 3.0, and 4.0, and the certified studio credit, to be allocated by the California Film Commission in differing amounts equal to specified percentages of the qualified expenditures of a qualified motion picture in this state. Existing law allows those credits to be sold if they are allocated to independent films, as defined. Existing law allows those credits to be carried forward for 9 years in the case that the credit exceeds the tax owed, as provided. Existing law allows a qualified taxpayer to elect to be paid a refund equal to 90% of the total refundable amount, as specified, over a period of 5 years if the amount allowable as a credit under motion picture credit 4.0 exceeds the qualified taxpayer's tax liability for the taxable year, and allows the excess to be carried over, as specified. Existing law allows these refunds from the Tax Relief and Refund Account, which is a continuously appropriated fund. This bill would expand the carry forward provisions of motion picture credit 2.0 and 3.0 to 15 years. The bill would require the qualified taxpayer, or a related company, as specified, to be an active participant, as defined, to carry the credit forward for any of the 10th through the 15th years, inclusive. The bill would also increase the total refundable amount under motion picture credit 4.0 from 90% to 95%, and would make the refund payable over 2 years instead of over 5 years. By increasing the amounts refunded from a continuously appropriated fund, the bill would make an appropriation. (2) Existing law, for taxable years beginning on or after January 1, 2024, and before January 1, 2030, limits the total tax reduction by all business credits, as defined, to $5,000,000 per taxable year, except as specified. Existing law, for taxable years beginning on or after January 1, 2030, similarly applies a business credit limit of 70% of the total taxes imposed or $5,000,000, whichever is greater, except as specified. This bill would, for taxable years beginning on or after January 1, 2027, exempt credits that have been sold from the business credit limit described above. (3) This bill would make legislative findings and declarations related to a gift of public funds. (4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
- Introduced
- 2025-01-23
- Latest action
- 2026-09-19 — Chaptered by Secretary of State. Chapter 344, Statutes of 2026.
- Bill type
- bill,appropriation
- Last updated
- —
Subjects
Sponsors
- Committee on Budget and Fiscal Reviewauthor
Committees
Not provided by source.
Action timeline
Newest first
2026-09-19
Chaptered by Secretary of State. Chapter 344, Statutes of 2026.
became-law
2026-09-19
Approved by the Governor.
executive-signature
2026-09-10
Enrolled and presented to the Governor at 4 p.m.
executive-receipt
2026-08-31
Read third time. Passed. Ordered to the Senate.
2026-08-31
In Senate. Concurrence in Assembly amendments pending.
2026-08-31
Unanimous consent granted to take up without reference to file.
2026-08-31
Assembly amendments concurred in. (Ayes 32. Noes 7.) Ordered to engrossing and enrolling.
2026-08-31
Read third time. Passed. (Ayes 75. Noes 2. Page 7041.) Ordered to the Senate.
passage,reading-1,reading-3
2026-08-30
Ordered to third reading.
reading-1,reading-3
2026-08-30
Withdrawn from committee pursuant to Asssembly Rule 96.
withdrawal
2026-08-30
(Ayes 56. Noes 19. Page 6855.)
2026-08-30
Withdrawn from committee pursuant to Assembly Rule 96.
withdrawal
2026-08-28
From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.
amendment-passage,committee-passage,reading-1,reading-2,referral-committee
2025-03-24
Referred to Com. on BUDGET.
referral-committee
2025-03-20
In Assembly. Read first time. Held at Desk.
reading-1
2025-03-20
Read third time. Passed. (Ayes 28. Noes 10. Page 459.) Ordered to the Assembly.
passage,reading-1,reading-3
2025-03-18
Read second time. Ordered to third reading.
reading-1,reading-2,reading-3
2025-03-17
Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)
withdrawal
2025-03-17
Ordered to second reading.
reading-1,reading-2
2025-02-05
Referred to Com. on B. & F. R.
referral-committee
2025-01-24
From printer. May be acted upon on or after February 23.
2025-01-23
Introduced. Read first time. To Com. on RLS. for assignment. To print.
introduction,reading-1,referral-committee
Versions
Documents
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Votes
3rd Reading SB186 B. & F.R.
2025-03-20 · pass · 28-10
Member-level votes (40)
- Becker: yes
- Arreguín: yes
- Smallwood-Cuevas: yes
- Hurtado: yes
- Richardson: yes
- Rubio: yes
- Grayson: yes
- Laird: yes
- Pérez: yes
- Cabaldon: yes
- Durazo: yes
- Umberg: yes
- Wiener: yes
- Padilla: yes
- Menjivar: yes
- Caballero: yes
- Weber Pierson: yes
- Wahab: yes
- Limón: yes
- McGuire: yes
- McNerney: yes
- Ashby: yes
- Archuleta: yes
- Allen: yes
- Gonzalez: yes
- Cervantes: yes
- Cortese: yes
- Blakespear: yes
- Choi: no
- Seyarto: no
- Ochoa Bogh: no
- Strickland: no
- Dahle: no
- Valladares: no
- Alvarado-Gil: no
- Grove: no
- Niello: no
- Jones: no
- Stern: other
- Reyes: other
Related bills
No related bills recorded for this bill.
Official source
Attribution
Data from openstates_api_sync, retrieved 2026-09-22T00:47:41.374905Z
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