CA AB175

Suspends net operating loss deductions for taxable years 2024-2026, with carryover periods extended by 1-3 years; applies only to taxpayers with net business income or modified adjusted gross income exceeding $1,000,000.

Limits total business credits to $5,000,000 per taxable year for 2024-2026; allows excess credits to be carried forward and creates a refundable credit option equal to 20% of disallowed amounts beginning in the third year after election.

Makes motion picture tax credits subject to the $5,000,000 annual limitation under modified rules; allows qualified taxpayers to elect refundable credits for amounts exceeding the cap.

Modifies California tire fee collection procedures to require the Department of Tax and Fee Administration to collect fees under the Fee Collection Procedures Law instead of the previous retail seller model.

Suspends limitations on net operating loss deductions and business credits for 2025-2026 calendar years if the Director of Finance determines sufficient General Fund revenues exist and the annual Budget Act includes legislation removing these provisions.