Production Incentives Database

California Relocating TV (1st yr back)

Incentive Type Non-Transferable Non-Refundable Tax Credit
Spend 25%
Above the Line Residents N/A
Above the Line Nonresidents N/A
Below the Line Residents 25-30%
Below the Line Nonresidents 25-30%
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) - 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)
Project Criteria Relocating TV Series: 25% base incentive for First season back only. $1 million minimum budget per episode; most recent season filmed 75% of principal photography outside California (6 Episodes at any episode length).Credit is reduced to 20% after the first season filmed in California. (see CA base state section)

Film at least 75% of Principal Photography days wholly in California OR 75% of the Production Budget must be incurred and used for goods, services and/or wages within California.

Diversity Tracking and Unlawful harassment Policy is required

Applicants receiving a credit allocation letter(CAL) are required to make a financial... +Read More
Loanout Registration Required No
Loanout Withholding No
Annual Funding Caps $56,100,000
Project Caps None
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(CAL) 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 using qualifying wages, qualified non wage expenditures, the expected credit amount and utilizing "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).

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

Screen Credit Required
Company Registration
Sales Use Tax Relief
Hotel Occupancy Tax Relief
Local Vendors Qualify
Outside Vendors Qualify
Claiming Incentive
All final reports, applications, Agreed Upon procedures report, 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
The maximum tax credit allowed is 30%.

Only tax credits issued to independent films may be transferred or sold to an unrelated party. Other qualified taxpayers may carryover tax credits for 5 years and transfer tax credits to an affiliate.

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

The Qualified Expenditure Charts and Expenditure Tracking Tips are available at California Film Commission

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.