California Bill SB 1229 Targets Film Tax Credit Cap Fix Before Session Ends

California lawmakers introduced SB 1229 on 20 August 2026 to soften a $5 million annual cap on film and TV tax credits passed in June. The bill, by Assemblyman Rick Chavez Zbur and Sen. Ben Allen, fully exempts independent films and cuts studios' cash-conversion repayment window from five years to two, reducing the discount from 10% to 5%. The legislative session ends 31 August. The MPA, PGA and Entertainment Union Coalition support the fix. Governor Newsom's team reportedly indicated the proposal was not what they had in mind.