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Incentives

Production Incentives Database

Incentive Type Non-Transferable Non-Refundable Tax Credit
Spend 20-25%
Below the Line Residents 20-30%
Below the Line Nonresidents 20-30%
Bonus Out-Of-Zone Bonus- Filming outside the Los Angeles 30-mile zone (does not include Post) - This bonus includes expenditures and L.A. based residents working in the Out-Of-Zone area. 30 miles in radius from Beverly Boulevard and La Cienega Boulevard, Los Angeles, California, and includes Agua Dulce, Castaic, including Lake Castaic, Leo Carillo State
Beach, Ontario International Airport, Piru, and Pomona, including the Los Angeles County Fairgrounds. The Metro Goldwyn Mayer, Inc. Conejo Ranch property is within the Los Angeles zone (Bonuses can not be combined)
Bonus Local Hire Labor- Out-Of-Zone- (Does not include Post) Applies to individuals who reside in California outside the Los Angeles zone, and who perform services outside the Los Angeles zone. (two forms of residency needed- ID and Utility Bill of 3 months prior to working on project)
Project Criteria Feature films: $1 million minimum budget and 75 minute run time (credit allocation applies only to the first $100 million in qualified expenditures). The features category can include films and live productions made for TV and streaming platforms
New Television Series for any distribution outlet: $1 million minimum budget per episode (minimum 40 minutes per episode, scripted only);
TV pilots: $1 million minimum budget (minimum 40 minutes)
Miniseries: $1 million minimum budget per episode (minimum 40 minutes per episode with at least two episodes)

Film at least 75% of Principal Photography days wholly in California OR 75% of the Production... +Read More
Loanout Registration Required No
Loanout Withholding No
Annual Funding Caps $247,500,000
Project Caps 25000000
Minimum Spend $1,000,000
Sunset Date 06/30/2025
Audit Requirements
An agreed upon procedures report by an independent California CPA is required. Only CPAs who have attended a CPA Orientation Seminar 3.0 are permitted (proof of registration)
Getting Started
California Film & Television Tax Credit Program 3.0

The application process includes:

Phase I: Eligible productions apply for tax credits.
Phase II: Applications with the highest-ranked jobs ratios submit required documentation.
Phase III: Credit Allocation Letters are issued for approved projects.
Phase IV: Projects with CALs( a received Credit Allocation Letter) enter Phase IV upon the start of principal photography, wrap, post-production, and the audit process.
Phase V: Once the audit process is completed, a “Tax Credit Certificate” is issued

Projects that rank in the top 200% will be notified to submit Phase II documents. Job Ration is determined based on a mathematical equation on qualifying wages, qualified non wage expenditures, the expected credit amount and using "bonus points" Contact the Film office for further details.

Productions must begin principal photography within 180 days of receipt of the CAL (Credit Allocation Letter). Approved projects with a qualified expenditure budget of $100M or more have 240 days to begin filming

Applications must be submitted online during specific allocation periods (Application Windows below).

Recurring & Relocating TV (No New TV currently accepted)
Relocating TV Series: Non-Transferable
(Not New)Recurring TV Series: Non-Transferable
March 15 – 17, 2021
Phase II: March 18 – 22, 2021
Approval Date: April 19, 2021
5PM on the last day

Features
(Non-Indie Feature Films: Non-Transferable
Indie Feature Films: Transferable)
January 25 – 27, 2021
Phase II: January 28 – February 1, 2021
Approval Date: March 1, 2021
5PM on the last day












Screen Credit Required
Yes
Company Registration
Yes
Sales Use Tax Relief
Yes
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
All final reports, applications, and Final Element Verification must be complete. FYI, Services performed no more than 30 days after the Final Element Verification date will qualify.

January 1, 2020 and before January 1, 2023, Non-Independent tax credit recipients are limited to a cap of $5M with respect to offsetting state income tax liability and a $5M cap with respect to offsetting Sales and Use tax liability. This applies to projects in both Program 2.0 and Program 3.0 tax credit programs. The cap on credits against income tax liability are at the combined reporting group level; the cap on credits against Sales and Use tax liability can be claimed by affiliates. Carry over credit for can be applied for offsetting "net tax" to the next 6 years(2.0)/ 9 Years (3.0) after issuance.
Additional Information
Bonus
VFX expenditures in-state must equal at least $10 million dollars OR 75% of total worldwide VFX costs in order to qualify for the Bonus. (Bonuses can not be combined)

The maximum tax credit allowed is 30%.

*Project Cap is a base of $20M with the possibility of 25M if uplifts are taken into account

Allocation of funding for Feature Films= $115,500,000
Allocation of funding for New TV Series, Recurring, Pilots, Mini-series= $132,000,000

FYI ;Background performers (extras), stand-ins and off-camera stunt
personnel do qualify.

The Qualified Expenditure Charts and Expenditure Tracking Tips are available at http://www.film.ca.gov/

Last updated: 07/01/2020

Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at clientservices@mediaservices.com.