California AB 186 exempts indie film credits from $5M cap, leaves studios subject to it

California lawmakers unveiled AB 186 on 29 August 2026, partially shielding the film industry from a new $5 million annual corporate tax credit cap. Independent film credits — about 10% of the state's $750 million programme — are fully exempt. Studio productions remain capped. The Motion Picture Association and Entertainment Union Coalition signed on, though the deal falls short of the full exemption sought. Both legislative houses must pass the bill by midnight Monday. [Variety]