California Code of Regulations › Title 10 - Investment › Chapter 7.75 - California Film Commission › Article 3 - California Film and Television Tax Credit Program 3.0 › Section 5521 - Application Process for Tax Credit Allocation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				open allocation periods for the California Film & Television Tax Credit
				Program 3.0 shall be announced by the Director of the CFC prior to each new
				fiscal year on the CFC website. The California fiscal year is from July 1 to
				June 30. The announcement shall identify the application categories:
				Independent films, feature films, relocating television series, and television
				projects that may be submitted in each application period.
(b) An applicant that begins principal
				photography in California prior to receiving a CAL shall be disqualified from
				receiving such letter for that particular production.
(c) An applicant shall not submit a duplicate
				application for a project during any given allocation period. Submittal of
				duplicate applications shall be good cause to disqualify an applicant from the
				tax credit program.
(d) An
				applicant may submit a new application for the same project during any fiscal
				year if the qualified production did not receive or retain a tax credit
				allocation from a previous allocation period in the same fiscal year.
(e) An applicant, including any affiliated
				entities, that has been issued a tax credit allocation for a particular
				production that begins but does not complete principal photography of that
				production, shall not be eligible to reapply for a tax credit reservation for
				that particular production.
(f) Any
				expenditures for services, wages, or goods incurred prior to application
				approval shall not be considered qualified expenditures with the exception of
				production facility, office rentals, completion bonds and insurance premiums,
				which may be prorated to include the expenditures which are incurred on or
				after CAL issuance.
(g) An
				applicant of a television series shall submit one application for a television
				season of that television series. A television series with an order for
				additional episodes for the same season may apply in a subsequent television
				allocation period.
(h) The
				application process for tax credit allocation shall occur in two phases. Phase
				I requires applicants to complete and submit the online application as set
				forth on the CFC website. Phase II occurs after all applicants have been ranked
				by jobs ratios and the highest ranked productions per category are required to
				submit their documentation. The applicant shall initiate the online application
				process by selecting a production category from the following: Feature film,
				independent film with a qualified expenditure budget of ten million dollars
				($10,000,000) or less, independent film with a qualified expenditure budget
				over ten million dollars ($10,000,000), new television series, recurring
				television series, pilot, mini-series, relocating television series. The
				application shall include the information-set forth below:
(1) Section
				1: Applicant information.
(A) Production title, date submitted,
				production category, principal photography start date, post production end
				date, estimated tax credit, Application Jobs Ratio, applicant entity and
				taxpayer ID number; Identify if the applicant is a corporation, limited
				liability company, individual proprietorship, subchapter S corporation,
				partnership, or other. If Relocating TV Series is selected under production
				category dropdown menu, for fiscal years 2021-22 and 2022-23, by checking the
				box, Applicant attests that the television series (without regard to episode
				length or initial media exhibition) that wishes to relocate to California has a
				minimum budget of at least $1 million per episode, filmed at least 75% of
				principal photography days for at least one episode outside of California, and
				has not filmed more than 25% of principal photography days for any episode
				inside of California. (A definition of the applicant that will receive the tax
				credit is included as per section
				5520(b)).