California Nears Deal to Ease $5M Cap Sidelining $750M Film Incentive

California lawmakers are finalizing a deal, set to be announced this week, to exempt independent film tax credits from a $5 million corporate tax-credit cap and accelerate refunds for larger studio projects, per Variety (18 August 2026). The cap, imposed in the June budget, made credits under the state's $750 million film and TV incentive unclaimable for bigger productions. The deal falls short of the full carveout Hollywood sought. Lawmakers face a 31 August session deadline.