CAL.Regulation
California extends film credit carryforward to 15 years and raises refunds to 95 percent under SB 186
Governor Gavin Newsom signed SB 186, a budget trailer bill, on September 19, 2026, as Chapter 344 of the Statutes of 2026, effective immediately. It extends the carryforward period for motion picture credits 2.0 and 3.0 from 9 to 15 years. It raises the refundable amount under motion picture credit 4.0 from 90 to 95 percent, payable over two years, and, for taxable years from January 1, 2027, exempts sold credits from the $5 million business credit limit.
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Key points
- SB 186 was approved September 19, 2026, and chaptered as Cal. Stats. 2026, ch. 344; as a budget trailer bill it took effect immediately.California Legislative InformationCalifornia Legislative Information
- Carryforward for credits 2.0 and 3.0 extends from 9 to 15 years; years 10 to 15 require the taxpayer to be an active participant.California Legislative Information
- The refundable amount under motion picture credit 4.0 rises from 90 to 95 percent, payable over two years instead of five.California Legislative Information
- For taxable years beginning on or after January 1, 2027, credits that have been sold are exempt from the $5 million business credit limit.California Legislative Information
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California Legislative Information