Did the California Film Commission recently adopt new regulations in connection to the California Film & Television Tax Credit Program 2.0?
Tax Professional Answers
The new regulations implement the new California Film & Television Tax Credit Program under the corporate income and franchise tax laws and the personal income tax laws that were enacted by the 2014 legislation (i.e., A1839, c. 413). As a synopsis, the 2014 legislation represented a true paradigm shift from the previous program as it more than tripled the size of the California Film & Television Tax Credit Program funding from $100 million to $330 million and it expanded a range of project types that were previously ineligible. The primary changes from the prior program include:
• Increases tax credit program funding from $100 million to $330 million and extended the program for 5 years;
• Expands eligibility to big-budget feature films, 1-hr TV series (i.e., for any distribution outlet) and TV pilots;
• Eliminates budget caps for studio and independent films;
• Replaces lottery selection with a ranking system based on jobs and other criteria; and
• Adds a 5% “Uplift” for productions that film outside the 30-Mile Zone, as well as for visual effects and music scoring/recording performed in-state.
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