CA SB175

Suspends net operating loss deductions and limits business tax credits to $5,000,000 per year for taxable years 2024-2026, with exceptions for taxpayers earning less than $1,000,000 and provisions allowing the Director of Finance to waive these limits if the General Fund forecast is sufficient.

Establishes a refundable credit option allowing taxpayers to elect an annual refundable credit amount equal to 20% of qualified credits exceeding the $5,000,000 limitation, payable beginning the third taxable year after election, funded from the Tax Relief and Refund Account.

Modifies the California tire fee collection to be administered by the California Department of Tax and Fee Administration under the Fee Collection Procedures Law, maintaining fees at $1.75 per tire (until January 1, 2034) then reducing to $0.75 per tire thereafter.

Specifies that sales and use tax credit limitations under the motion picture credit apply for calendar years 2024-2026, with provisions allowing the Director of Finance to waive limitations for 2025-2026 if General Fund conditions permit.

Becomes operative only if Senate Bill 167 of the 2023-24 Regular Session is enacted and becomes effective; takes effect immediately as a budget-related bill.