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The Brief

The most important stories for you to know today
  • Nearby playgrounds, neighborhoods tested
    A brick chimney stands in the ruins of a home. A red grill is also visible.
    A chimney is all that remains of one Altadena home destroyed in the Eaton Fire.

    Topline:

    USC researchers traveled through neighborhoods devastated by the Eaton Fire to run lead tests on ash gathered from gutters and sand pulled from playgrounds.

    What they found: They found a whole lot of variability between the samples, with some barely showing any lead and others with lead concentrations far exceeding EPA limits.

    Neighborhood results: Samples of ash gathered right in front of burned homes in Altadena tended to have higher levels of lead. Material gathered from nearby neighborhoods had barely any lead.

    Playgrounds results: Of the seven playground samples that have been tested, lead levels were low to non-existent.

    Go deeper:
    An unexpected sore spot for preschools after the fires: sandboxes
    Dear LAist: How long could ash be a problem in LA?

    Late last month, before the rains arrived, USC professor Seth John traveled through foothill neighborhoods devastated by the Eaton Fire, gathering street dust to test for lead. Another USC professor, Sam Silva, visited public parks and preschools, sampling sandboxes he and his friend's kids played in.

    Listen 0:46
    Researchers tested sandboxes and street dust for lead after the Eaton Fire. Here's what they found

    Concerns have arisen following the deadly fire after thousands of older buildings, where lead paint is often present, burned, raising questions about how far ash, laden with toxic heavy metals, has spread across the region.

    What the researchers found

    John and his graduate students tested 19 samples gathered every half mile or so, from La Cañada Flintridge to Monrovia. Some from right in front of burned homes and others from neighborhoods where homes were spared, but blanketed in wildfire ash. The result? They found a lot of variability between the sites.

    Somewhat predictably, the street dust from the middle of Altadena, which saw the worst damage, showed high levels of lead, with samples ranging from just above the California EPA soil screening limit of 80 parts per million to more than 20 times that. Meanwhile, material gathered from nearby neighborhoods had barely any lead present.

    " We were actually very relieved to discover that although there were higher amounts of lead in this dust, it really was not nearly as concerning and not nearly as toxic as we had feared it might be," John said.

    It's not uncommon to find high levels of lead contamination in urban areas from things like leaded gasoline and industrial sources. John also ran tests using soil from around the USC campus and got similarly high measurements.

    Of the seven playground samples that have been tested, lead levels were low to non-existent.

    “The playgrounds came from me texting other parents asking where do you take your kids that has sand,” Silva said. “As a scientist, this result is not remarkably surprising, but as a parent I was deeply relieved.”

    Putting the tests into context

    There's been a dearth of information about how far toxic heavy metals have spread following the fires, and tests like these are important to help residents understand potential risk. If you take your kids to parks in these areas, you may feel a bit more comfortable letting them play in the sandboxes.

    However, far more testing needs to be done, especially in areas in which homes burned — not just for lead, but an array of heavy metals including chromium and arsenic, the latter of which is used to make wood rot resistant.

    "Lead is just one of the heavy metals," said Sanjay Mohanty, professor of civil and environmental engineering at UCLA.  "When you have chromium and lead together, it's just the toxicity is much more now because your body's overwhelmed with so many metals."

    After debris and ash are cleared, Mohanty recommends people do comprehensive soil testing across their properties, with multiple samples gathered and averaged so that they can get a complete picture of just how safe the dirt around them is.

    The rains should help wash away a lot of the street dust, though John from USC will be heading out after the storms to run another series of tests to monitor the changes in heavy metal concentrations.

  • Investigation finds staggering hidden toll
    A collage made of paramedics, a thermometer, a person drinking from a bottle, and the CDC signage on the building. The images are in red and include charts and maps.
    Collage by Emily Bogle

    Topline:

    An NPR investigation found that people in the U.S. are dying from heat much more often than official counts show. We explore the reasons why — and how lives can be saved.

    The backstory: NPR partnered with Boston University to find the total number of deaths influenced by heat every year in the United States. The investigation took two years and involved building a statistical model that assessed nearly every county in the country. The full analysis will soon be published in a scientific journal.

    How big is the undercount? The scale of the undercount is significant. The primary keeper of cause-of-death records in the U.S. is the Centers for Disease Control and Prevention (CDC). It keeps an annual tally of heat-related deaths in the U.S., which is compiled from state reports based on whether heat is noted on individual death records. From 2004 to 2018, the national number of heat-related deaths compiled by the CDC was low: on average, around 700 a year. The number has crept up in recent years, averaging around 1,700 but sometimes topping 2,000, as heat risks grow and counting strategies evolve. But even that number is an underestimate, according to NPR and BU's analysis.

    Read on... for more on the hidden toll of deaths from heat.

    Thousands of Americans die every year from a chronically underreported cause: heat.

    As summer heat intensifies because of human-driven climate change, the United States' official tally of heat-related deaths does not come close to capturing the full human toll. The data feeding into nationwide death counts is collected inconsistently and rarely thoroughly.

    The result is a vast undercount of the number of people who die because of heat. And experts say failing to recognize and address this may cost more people their lives.

    So NPR set out to create a more comprehensive national count.

    We partnered with Boston University to find the total number of deaths influenced by heat every year in the United States. The investigation took two years and involved building a statistical model that assessed nearly every county in the country. The full analysis will soon be published in a scientific journal.

    An accurate assessment of the true scope — as well as understanding who is affected, where and why — is critical for developing lifesaving solutions, says Quinn Adams, a research scientist at Boston University's Center for Climate and Health and the lead partner in the joint NPR-BU investigation.

    Beyond the statistical assessment, NPR set out to find people whose deaths slipped through the cracks — those who might not have died if heat hadn't pushed them beyond their breaking point — to understand exactly how heat could be missed as a factor. We will be bringing you their stories in the coming days.

    But first, here are three key takeaways from our research — and why it matters.

    How big is the undercount?

    The scale of the undercount is significant.

    The primary keeper of cause-of-death records in the U.S. is the Centers for Disease Control and Prevention (CDC). It keeps an annual tally of heat-related deaths in the U.S., which is compiled from state reports based on whether heat is noted on individual death records.

    From 2004 to 2018, the national number of heat-related deaths compiled by the CDC was low: on average, around 700 a year. The number has crept up in recent years, averaging around 1,700 but sometimes topping 2,000, as heat risks grow and counting strategies evolve.


    But even that number is an underestimate, according to NPR and BU's analysis. On average between 2018 and 2025, we estimate that some 9,000 deaths each year in the country are impacted by heat — a factor of five higher than the official average over that same period.

    Some years, heat-related deaths can top 10,000.

    The true figure could be even higher, says Adams, because of some limitations in the data and the conservative nature of our analysis.

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    The dangers from heat are growing every year because of human-caused climate change. The heat wave season has extended by a month and a half since the 1960s. In 50 of the country's biggest cities, the number of heat waves has doubled since the 1980s. Heat domes that settle over the country regularly expose tens of millions of Americans — sometimes well over 100 million at a time — to dangerous heat.

    "The frequency and the duration of these heat events has been expanding very rapidly," says Adams. "That's what we can expect moving forward into the next few decades: having more heat waves, and having them last longer, and having them be more intense such that people don't get the escape from the heat that they need to physiologically reset."

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    The reasons for the undercount are complex. But a crucial issue, says doctor and researcher Sameed Khatana of the University of Pennsylvania's Perelman School of Medicine, is that heat's role in a death is often masked by other more obvious causes of death, like a heart attack.

    "Heat is what people often call the silent killer, compared to things like hurricanes and typhoons," says Khatana.

    Heat, he says, can often be the trigger that pushes someone's health condition — like cardiovascular disease — from manageable to fatal. "The heart starts beating faster and harder," he explains, to shunt blood to the skin to cool the body. And eventually, if someone's heart is already weak, it may not be able "to keep up with the demand that was required of it," he says. That can lead to something like a heart attack.

    But often, Khatana says, because heat leaves no obvious mark behind for doctors or coroners to examine, the cause of death gets marked down only as a heart attack. Heat isn't noted on the death certificate, and therefore it is not included in the tallies reported to the municipality, the state and eventually the federal recordkeepers.

    Such omissions are understandable, Khatana says. But repeated thousands of times, in all parts of the country, they create a blind spot that obscures the scale of heat's danger.

    National risks — even in unexpected places

    The NPR and BU investigation found that heat is killing people in nearly every corner of the country.

    Our analysis finds that Florida and Texas have the most heat-related deaths overall. That is in part due to their large populations. But those states remain among the most impacted even when adjusted for their size.

    But the losses are not limited to states historically considered hot.

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    Our model finds that more than 100 people die from heat-related causes in Michigan every year, 10 times the official reported numbers. In Massachusetts, official records say only about 5 people die from heat each year, but our estimate suggests that number could be more than 60.

    And in Florida, the difference is even more dramatic: We estimate more than 1,900 deaths each year, about 40 times as many as reported.

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    Heat can be particularly dangerous for people who are not already used to it. And in many parts of the country that were not historically hot, infrastructure to keep cool is less common. Nearly all homes in Alabama have some form of air conditioning, for example. But in Washington state, only 53% of homes do. In Maine, 70% do. Yet the risks of heat exist, and are growing, in those states as well as those where it is a more entrenched problem.

    Counts are getting more accurate — but not everywhere

    The official national counts from the CDC have trended upward in recent years, rising from an average of roughly 700 between 2004 and 2018 to about 1,700 between 2018 and 2025.

    That increase is due in large part to two things: Heat is simply getting worse, according to the most recent National Climate Assessment, and also there is better counting of heat-related deaths in some parts of the country.

    Arizona's Maricopa County — home to Phoenix — has developed sophisticated protocols for sussing out the subtle influences of heat on people's deaths. Maricopa County trains "death investigators" to look for signs of heat stress, such as asking about the state of the deceased's air conditioning system, their ability to pay electric bills to run ACs, their use of medications that increase heat sensitivity, and more.

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    But Maricopa County is something of an outlier. In contrast, the counties home to Los Angeles and Houston report very few heat-related deaths. Yet our model finds hundreds of people likely die in each of those counties because of heat each year.

    Los Angeles recognizes the problem, says Nichole Quick, the chief science officer at the Los Angeles County Department of Public Health. The county's official numbers "are vast undercounts," Quick says. "The true impact of this is higher than I think a lot of the numbers show."

    But solving the counting problem isn't simple. It took Maricopa County years to fine-tune its strategies for more accurately assessing heat's impact on deaths. And many doctors who certify deaths in emergency rooms and hospitals, or for patients who die at home, don't have protocols for confidently identifying heat impacts, says Khatana.

    Until such issues are addressed, says Adams, the undercount will remain, and heat's true toll will remain obscured — making it harder for policymakers, planners and families to understand the urgency to protect themselves.

    "Most people do not see themselves as vulnerable to heat. They're like, 'Oh, that's someone else. It's not me,'" says Adams. But the data is clear: Heat can take anyone, anywhere in the country. "But then, you know, push comes to shove and it actually is you."

    NPR will be continuing this coverage in the coming days, exploring why deaths slip through the cracks and how lives can be saved.


    Credits

    • This reporting was supported by a Nova Institute for Health Media Fellowship. It was also supported by the Dennis A. Hunt Fund for Health Journalism.
    • Nick McMillan contributed to this report.


    Data sources and methodology

    Mortality data
    We analyzed weekly all-cause mortality from 2018 through 2025 for 530 U.S. counties with populations of at least 50,000. These counties represented approximately 73% of the U.S. population in 2024. We excluded data from 2020 because the COVID-19 pandemic substantially disrupted typical patterns of mortality and health care. For comparison, we also queried the Centers for Disease Control and Prevention's WONDER database to compile death data for which "heat exposure" was listed as a primary or contributing cause on the official death record.

    Temperature data
    We obtained temperature estimates from ERA5-Land, a global weather dataset produced by the European Centre for Medium-Range Weather Forecasts that combines observations with a weather model to estimate conditions across areas without monitoring stations. For each county and week, we calculated a population-weighted average of daily maximum temperature, giving greater weight to temperatures in more heavily populated areas. Because the same temperature may have different health effects in different parts of the U.S., we additionally ranked temperatures relative to each county's usual climate, allowing us to consider local differences in acclimatization.

    Heat-related mortality estimates
    We used space-time stratified case-crossover methods to estimate how unusually hot weeks affected deaths in each county during the same week and the following week. We allowed the effect of temperature to be nonlinear, meaning that mortality could rise more sharply at very high temperatures. We then combined county-level estimates within each state to identify the temperature associated with the lowest mortality, commonly referred to as the minimum mortality temperature (MMT). State-level MMT estimates were used because sparse weekly mortality counts in some counties made county-specific estimation of the MMT unreliable. This approach improved statistical reliability while still allowing regional differences in climate and heat adaptation to be reflected. County-level attributable mortality estimates were extrapolated to the full population of the contiguous United States by applying the estimated attributable mortality rate from the included counties to the total contiguous United States population. We defined heat-attributable deaths as deaths associated with temperatures above the state-specific minimum mortality temperature. We conducted all analyses using the open-source cityClimateHealth R package.
    Copyright 2026 NPR

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  • Rams legend returns to chase another Super Bowl
    Aaron Donald #99 of the Los Angeles Rams reacts after defeating the San Francisco 49ers in the NFC Championship Game at SoFi Stadium on Jan. 30, 2022 in Inglewood.

    Topline:

    Aaron Donald has returned to the Los Angeles Rams, ending his retirement after 2 1/2 years to join Myles Garrett on their defensive line. The Rams announced the 35-year-old Donald's decision Sunday following several weeks of discussion, preparation and intensive workouts for the star defensive lineman.

    Why it matters: Donald became one of the greatest defensive players of his era during his first 10 seasons spent entirely with the Rams in St. Louis and Los Angeles. He won three AP NFL Defensive Player of the Year awards while earning 10 Pro Bowl selections, eight All-Pro selections and a Super Bowl ring before he retired somewhat abruptly in March 2024.

    Why now: After two years of tending to his business interests and enjoying ample family time, Donald began to entertain the notion of a comeback this summer after the Rams traded young lineman Jared Verse in a deal for Garrett, one of Donald’s few peers in contemporary defensive line play. With MVP Matthew Stafford leading the NFL's top-ranked offense, Los Angeles was already the betting favorite in most sportsbooks to win its second Super Bowl title under McVay even before Donald's comeback.

    What's next: While he hasn’t decided whether he will play in the Rams’ season opener against the 49ers in Australia next month, Donald is eager to complete a comeback that seemed improbable only three months ago.

    Aaron Donald returned to the Los Angeles Rams on Sunday, ending his retirement after 2 1/2 years to chase another Super Bowl title.

    The 35-year-old Donald made his decision after several weeks of discussion and nearly three months of intensive workouts for a star defensive lineman who reigned atop his position in a Rams uniform from 2014 until his retirement in early 2024.

    Donald joined a light practice at the Rams’ training complex later Sunday, shaking hands and exchanging hugs with Myles Garrett and the rest of his teammates, both old and new.

    While he hasn’t decided whether he will play in the Rams’ season opener against the 49ers in Australia next month, Donald is eager to complete a comeback that seemed improbable only three months ago.

    “Do I feel like I can play at a high level? Yes,” Donald said. “Do I feel like I can still be myself? One hundred percent, and if I didn’t feel like that, I wouldn’t be here.”

    Donald agreed to a one-year contract, and ESPN reported he will make at least $20 million in an incentive-laden deal.

    Donald became one of the greatest defensive players of his era during a decade spent entirely with the Rams in St. Louis and Los Angeles. He won three AP NFL Defensive Player of the Year awards while earning 10 Pro Bowl selections, eight All-Pro selections and a Super Bowl ring before he retired somewhat abruptly following the 2023-24 season.

    After two years of tending to his business interests and enjoying ample family time, Donald began to entertain the notion of a comeback this summer after the Rams traded young lineman Jared Verse in a deal for Garrett, one of Donald’s few peers in contemporary defensive line play.

    With MVP Matthew Stafford leading the NFL's top-ranked offense, Los Angeles was already the betting favorite in most sportsbooks to win its second Super Bowl title under McVay even before Donald's comeback.

    Along with Garrett, Los Angeles added cornerbacks Trent McDuffie and Jaylen Watson from Kansas City to a defense that now looks more equipped to keep pace with the Rams' offense, which returns every major contributor around Stafford from last season's elite unit.

    Donald's 111 career sacks are the Rams' franchise record and the second most in NFL history among linemen who primarily played on the interior.

    The decision resets Donald's eligibility clock for his all-but-automatic induction into the Pro Football Hall of Fame, but he's much more interested in seizing the strong opportunity to play for a second ring while lining up alongside Garrett and talented young contributors Byron Young, Kobie Turner and Braden Fiske on what should be an opponents' nightmare of a defensive front.

    Donald would have been eligible for the 2029 class in Canton, Ohio.

  • Will Newsom sign bill for first responders?
    A group of firefighters walk up a steep hillside as firetrucks are parked in the distance.
    CalFire firefighters carry a fire hose up a hillside during the Sandy Fire in Simi Valley on May 18, 2026.

    Topline:

    California police and firefighters will be able to retire earlier and earn more generous pensions under a bill lawmakers sent to Gov. Gavin Newsom. It’s potentially expensive and government agencies are urging him to veto it.

    Why it matters: It sweetens the perks for public safety employees by allowing them to retire with full benefits at 55 rather than 57, and it allows their unions to bargain for more generous pension formulas by increasing the maximum accrual rate to 3% per year of service from today’s 2.7%. It also includes a provision that will boost retirement income for all higher-earning public employees by increasing a cap on how much they can receive from their pensions.

    More details: The new retirement bill would require government employers and employees to contribute an additional $282 million to CalPERS to cover the lower retirement age and increased cap on pensionable income. The sum is expected to increase by hundreds of millions of dollars more if all public safety agencies agree to pay the maximum benefits, according to the California Department of Finance. The finance department, which reports to Newsom, recommended that lawmakers reject the bill.

    Read on... for more on the bill.

    The ink isn’t dry on an expansion of pension benefits for California police and firefighters — in fact, Gov. Gavin Newsom hasn’t even signed it into law — but unions are already negotiating contracts as if their members could soon be eligible for more lucrative retirement formulas.

    It sweetens the perks for public safety employees by allowing them to retire with full benefits at 55 rather than 57, and it allows their unions to bargain for more generous pension formulas by increasing the maximum accrual rate to 3% per year of service from today’s 2.7%.

    It also includes a provision that will boost retirement income for all higher-earning public employees by increasing a cap on how much they can receive from their pensions.

    The Senate passed the measure by a vote of 33-0. It passed by a similarly overwhelming majority of 70-2 in the Assembly.

    “I’m supporting this because the men and women who run toward fire, violent crime and life threatening emergencies are not working ordinary jobs,” said Sen. Suzette Martinez Valladares, a Republican representing Lancaster.

    If Newsom signs Assembly Bill 1383, it will mark the state’s first enhancement of public employee pensions since former Gov. Jerry Brown championed a law that required public employees hired after 2013 to work longer for full benefits and kick in more money from their paychecks to fund their retirements.

    Brown’s law followed the back-to-back financial crises of the dot-com bust and the Great Recession, which obliterated tens of billions of dollars of assets in California pension funds and set off fears that they could become insolvent.

    California’s largest pension fund has not fully clawed out from its recession-era losses. The California Public Employees’ Retirement System as of July 1 held assets worth $637 billion, or about 85% of what it owes to its 2 million members over time.

    CalPERS over the last decade has ratcheted up the rates it charges cities, counties and the state, both by requiring employers to pay down losses faster and by revising its earnings targets to acknowledge that it expects to earn less money from investments. Payroll and employer contributions to CalPERS totaled $14.9 billion in the 2017 financial year; by 2025, the number climbed to $30.2 billion, according to the pension fund’s annual financial reports.

    The new retirement bill would require government employers and employees to contribute an additional $282 million to CalPERS to cover the lower retirement age and increased cap on pensionable income. The sum is expected to increase by hundreds of millions of dollars more if all public safety agencies agree to pay the maximum benefits, according to the California Department of Finance.

    The finance department, which reports to Newsom, recommended that lawmakers reject the bill.

    The measure would also apply to pension systems outside of CalPERS, including 20 that are managed by counties.

    Cities, counties fought pension expansion

    California local government agencies united in opposing the measure. They’re now hoping Newsom will veto it.

    “We want to pay our police and fire and all our employees all we can, but it has to pencil out at the end,” said Napa Mayor Scott Sedgley, who is a retired Napa firefighter.

    Unions were confident the measure would pass because it sailed through every vote in the Legislature, with Republicans joining with Democrats in arguing it’s an important investment in public safety.

    Some local police and fire unions insisted on including clauses in new contracts that reopen bargaining over retirement benefits if Newsom signs the bill. One was in Napa, where the city recently struck a five-year contract with its firefighter union that includes a reopening pensions connected to the bill that just passed the Legislature.

    The unions “don’t want to miss the year, two years, or whatever they’re locked into their agreement,” said attorney Michael Youril of the firm Liebert Cassidy Whitmore.

    “I would say there’s going to be immense pressure” on local government agencies to increase retirement benefits to the maximum rate allowed, he said.

    Police officers stand and speak with one another in front of a bus with lights outside on a street at night.
    San Diego Police Department officers arrest a group of protesters who barricaded themselves inside Mayor Todd Gloria’s office at San Diego City Hall in San Diego, on Jan. 23, 2026. The protesters demanded to meet with Gloria to discuss concerns about how SDPD interacts with federal immigration agents.
    (
    Adriana Heldiz
    /
    CalMatters
    )

    Unions are allies to Gov. Newsom

    The bill would benefit public safety unions that have been critical allies to Newsom, including California Professional Firefighters and the California Correctional Peace Officers Association. Leaders of the firefighter union in particular lobbied for the lower retirement age by pointing to the toxic hazards their members face, which can shorten their careers and lives.

    The unions stress that the bill does not fully unwind Brown’s pension law. Until that law took effect, police and firefighters could retire at 50 with even more generous pension formulas. They characterize the current bill as a modernization of the one Brown signed.

    Revising the pensions has been the top legislative priority for the Peace Officers Research Association of California, an organization that represents California police unions. The association’s president, Brian Marvel, said the possibility of a Newsom veto worries him.

    “We’re really hoping that the governor doesn't want to go down that path because we really feel that this is a great opportunity for him to leave office addressing a huge issue within public safety,” Marvel said.

    Recruiting and retention have been a problem, Marvel said.

    “We want to make sure that we have the necessary resources to be able to address what the community’s needs are,” he said.

    If the bill doesn’t get past Newsom, Marvel said law enforcement groups “would have to have serious conversations regarding his veto” if Newsom seeks the presidency.

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

  • CA to restore access to tax break for indie films
    A film crew shoots a scene of two actors sitting in a living room area.
    A cast and crew film a scene for the making of the film "The Seed" in a residential neighborhood in North Hollywood on Aug. 4, 2026.

    Topline:

    Gov. Gavin Newsom’s new corporate tax credit cap, signed into law this summer, threatened to diminish Hollywood’s tax breaks. State leaders want to fix that by exempting independent film productions from that cap.

    Why now: California lawmakers are poised to adopt a proposal Monday to exempt independent Hollywood productions from a new cap on how many tax credits they can claim each year, following months of pressure from the multibillion-dollar entertainment industry and fears about more productions fleeing the state.

    Why it matters: The proposal, Assembly Bill 186, effectively maintains independent productions’ ability to access California’s film tax credits. Such productions often have smaller budgets than major studios and claim less tax credit.

    Read on... for more on the proposal.

    This story was originally published by CalMatters. Sign up for their newsletters.

    California lawmakers are poised to adopt a proposal Monday to exempt independent Hollywood productions from a new cap on how many tax credits they can claim each year, following months of pressure from the multibillion-dollar entertainment industry and fears about more productions fleeing the state.

    The proposal, Assembly Bill 186, effectively maintains independent productions’ ability to access California’s film tax credits. Such productions often have smaller budgets than major studios and claim less tax credit.

    Created in 2009 to help California's film industry compete with the tax incentives and lower costs in other states and countries, the film tax credit lets production companies offset a portion of their annual tax liability. Last year, as Hollywood reeled from the effects of the COVID-19 pandemic, union strikes and wildfires, Gov. Gavin Newsom successfully pushed state leaders to double the size of the program and allocate up to $750 million a year in film tax credits in an attempt to keep more film and TV jobs in California.

    AB 186 also revises that program to benefit other motion picture companies by allowing them more time to use their film tax credits and giving them a bigger refund — and more quickly — if they choose to cash out on their unused credits.

    Under the new program, companies can apply leftover credits to future tax years, or get a cash refund — often in the millions of dollars — for the unused portion.

    Industry leaders celebrated last year’s expansion but it soon clashed with another Newsom priority: Capping corporate tax credits. In July, the governor signed into law a permanent cap, limiting the amount big companies can claim at up to $5 million or 70% of a company’s tax liability, whichever is higher, amid a gloomy budget outlook and pressure to make billionaires and corporations pay more.

    Hollywood advocates were infuriated, arguing the cap threatened to hamstring the film tax credit program. Bryan Lourd, CEO of the Creative Artists Agency, urged lawmakers earlier this month to exempt the industry from the cap.

    “Without this fix, we risk destabilizing a program that is critical to keeping film and television production in California and the thousands of jobs it supports,” he said in a letter.

    While the final deal does not exempt the entire industry, it reflects a starting point, said Assemblymember Rick Zbur, a Democrat who represents Hollywood and co-authored last year’s film tax credit expansion.

    The legislation will “provide greater stability and certainty for productions and workers, mitigate the impacts of the business tax credit limitation, and help us continue competing for jobs and investment,” he said in a statement.

    Under AB 186, some studios would be able to claim the tax credits above the cap up to 15 years in the future, instead of the nine years allowed under current law. Those who claimed tax credits from the expanded program last year would also be able to claim up to 95% of the unused tax credits as refunds, up from the current 90%, and the state must pay off the refund within two years, instead of five.

    If approved, the measure would cost the state up to $170 million in annual tax revenue, according to a legislative analysis of the proposal.

    A slew of lobbyists representing motion picture studios, such as SkyDance and Walt Disney, as well as labor unions, such as the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), supported the deal during a budget hearing Sunday.

    Shane Gusman, lobbyist for SAG-AFTRA and the Teamsters Union in California, told CalMatters the deal represents a compromise.

    “It’s fair to say that the unions and others were arguing for a full exemption,” he said Sunday. “But it’s one of those things we … got enough so that the program will continue to work.”

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.