California

Submit an online application during the application window; submit a written Unlawful Harassment Policy, Diversity Initiative Statement, and other documents; begin principal photography in California (CA) after the date on the Credit Allocation Letter (CAL) but no later than 180 days after that date (240 days for projects with qualified expenditure budgets over $100 million); ensure that at least 75% of principal photography days occur in CA or that at least 75% of the total production budget is utilized for goods, services, and/or wages within CA; contribute 0.25% of the estimated tax credit to a Pilot Skills Training Program; participate in a Career Readiness program; and deliver the final element within 30 months of the CAL date.

Qualified expenses eligible for the tax credit are limited to $10 million for an Indie film and $100 million for a TV series or a Non-indie film. Qualified costs include most below-the-line crew and staff salaries and wages; cost of facility rentals and equipment; and production operation costs such as safety, construction, wardrobe, food, lodging, and lab processing. Compensation for writers, producers, directors, performers (other than background performers with no scripted lines), music composers, and music supervisors do NOT qualify. Refer to the Qualified Expenditure Chart for details. Any costs incurred prior to the date on the CAL or more than 30 days after completion of the final element do not qualify.

This program is not administered on a first-come, first-served basis. Projects are ranked and approved within their specific category based on a “jobs ratio” formula. At the completion of production, if the jobs ratio has decreased by more than 10%, the tax credit amount will be reduced by an equal percentage. If the decrease is greater than 20%, other penalties apply. Funding is allocated as follows: Television projects: 40%; Non-independent films: 35%; Relocating TV series: 17%; Independent films: 8% (4.8% for films with qualified spend of $10 million or less and 3.2% for films of more than $10 million). Distribution via streaming or theatrical exhibition is not required. Program 4.0 refundable tax credit begins July 1, 2025.