THE INCENTIVES PROGRAM - TIP

Assembly Bill 1138 and Senate Bill 630 propose to amend the California Motion Picture and Television Production Credit, as follows:

• Increases the tax credit percentage amounts to:
  • 35% of the qualified expenditures for a feature, independent film, or a television series that relocated to California that is in its second or subsequent years of receiving a tax credit allocation;
  • 40% of the qualified expenditures for a television series that relocated to California in its first year of receiving a tax credit allocation;
• Increases the amount of qualified expenses eligible for the tax credit for independent films from $10 million to $20 million;
• Increases the annual funding from $330 million to $750 million per fiscal year (7/1 – 6/30);
  • Allows for the California Film Commission to have the discretion to reallocate up to 10% of the funds within any category amongst the remaining categories;
• Expands the definition of a “qualified motion picture” to include:
  • Live action or animated series, averaging across a season at least 20 minutes of running time per episode, exclusive of commercials, that is produced in California, with a minimum production budget of $1 million per episode;
  • An animated film that is produced in California, with a minimum production budget of $1 million;
  • A large-scale competition show, not including traditional reality, talk shows, or docufollow television programming, that is produced in California, with a minimum production budget of $1 million per episode;
• Amends the definition of a “new television series” to include a television series that has not previously received an allocation, and that completed principal photography of the previous season more than 48 months prior to their application for a tax credit;
• Revises the rules for recurring television series to require reapplication if no credit is requested within 18 months; and,
• Increases the “total refundable amount” from 90% to 100% of the credit amount that exceeds the “net tax” in the first taxable year of the refundable period.

Assembly Bill 7926 proposes to amend the Empire State Film Production Credit, as follows:

• Defines film zone as an area within a twenty-five mile radius of Columbus Circle in the borough of Manhattan; and,
• Excludes any portion of Rockland or Westchester County, which is located in the film zone, from the additional empire state film production credit.

If enacted, this act shall take effect immediately.

House Bill 1317 proposes to amend the Pennsylvania Entertainment Production program by increasing the annual funding cap from $100 million to $125 million per fiscal year (7/1 – 6/30) beginning on or after July 1, 2025.

If enacted, this act will take effect immediately.