California

california

Type of Incentive Tax credit; non-refundable; non-transferable (except for independent films); 5 year carry forward
Benefit Details 20% of qualified spend in state for features, MOWs, miniseries, and new television series; 25% of qualified spend in state for relocating TV series and independent films.  Only productions with 75% or more of principal photography days or 75% of production budget within the state are eligible.

Effective July 1, 2015: 5% additional credit for qualified spend relating to original photography outside the 30-mile LA Studio Zone. 5% additional credit for visual effects and music scoring attributable to a qualified motion picture in California, but requires 75% of visual effects budget or $10M in qualified visual effect expenditures incurred in CA.

Project Cap None.

Effective July 1, 2015: First $100M for feature films and first $10M for independent films are qualified expenditures.  No maximum budget requirement for features and independents.

Annual Cap $100,000,000 through FY 2014-2015

Effective July 1, 2015: $230M for FY 2015-2016 and $330M for each subsequent year through 2020. Lottery system will be replaced by “jobs ratio” formula.

Minimum Local Spend Minimum spend of $1M for features, independent films, or new TV series for Basic Cable; $500,000 budget for MOWs or miniseries. New TV series must have a running time of no less than 60 minutes. Relocated TV series have no minimum spend or episode length requirement, and must have filmed all previous seasons outside California.

Effective July 1, 2015: Minimum spend $1M for new TV series and TV pilots (at least 40 minutes per episode). Minimum spend $1M per episode for relocated TV series, without regard to episode length and filmed its most recent season outside of California.

Loan-Out Company Considerations Payments to loan-outs qualify except for payments to non-qualified individuals. Fringes on loan-outs do not qualify.
Additional Exemptions Hotel Occupancy Tax Relief Available.
Sales & Use Tax Relief Available.
Qualified Production Expenditures Incurred in State; In-State Vendors; Out-of-State Vendors; Fringes Paid for Qualified Labor; Taxes Paid for Qualified Labor.  Any costs prior to the credit allocation letter or 30 days after the final elements do not qualify.  Dual producer and BTL on screen credit qualify up to $100,000.  Contact us for more details.
Qualified Labor Resident and Nonresident, Below the Line.  Contact us for more details.
Sunset Date June 30, 2020
Film Commission California Film Commission
7080 Hollywood Blvd, Suite 900
Hollywood, CA 90028

Amy Lemisch, Director
323.860.2960

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NOTE: This content has been prepared by Kevin P. Martin & Associates, P.C.  for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact us to confirm any laws or the effect of incentives on your project.