State-by-state production incentives

California

California Film Commission
Amy Lemisch
t: (323) 860-2960 ext 102
alemisch@film.ca.gov
incentiveprogram@film.ca.gov
www.film.ca.gov

California’s production incentive allocates $100 million per year for “qualified motion pictures.” $10 million per year is reserved for “independent” films; that is, films with production budgets between $1 and $10 million produced by a company that is not publicly traded, and publicly traded companies do not own more than 25% of the producing company. Independent films will receive a transferable tax credit of 25% of qualified expenses.

Feature films ($1 million minimum – $75 million maximum production budget), movies of the week or miniseries ($500,000 minimum production budget) and new television series licensed for original distribution on basic cable will receive a nontransferable credit of 20% of qualified expenses. A TV series that filmed all of its previous seasons outside of California will receive a 25% nontransferable credit. (Certain restrictions apply).

To be a “qualified motion picture,” 75% of the total budget spent or 75% of production days must be in California; the application must be submitted at least 30 days prior to the start of principal photography, and production must start within 180 days of approval of the application. Post-production must be completed within 30 months.

“Qualified expenses” are amounts  paid or incurred for the purchase or lease of tangible personal property and qualified wages for services performed in California.  Not qualified are:

• Wages paid to writers, directors, music directors, music composers, music supervisors, producers and performers, other than background actors with no scripted lines.
• Expenses, including wages, related to new use, reuse, clip use, licensing, secondary markets, residual compensation or the creation of any ancillary produced including but not limited to, a soundtrack album,
• toy, game, trailer or teaser.
• Expenses related to acquisition, development, turnaround or any rights thereto; financing, overhead, marketing, promotion, or distribution of a qualified motion picture.
• State and Federal Income taxes.
• Audit expenses

All funds have been allocated for the fiscal year ending June 30, 2012.

$100 million will be available on July 1, 2012; anyone interested should plan to file on June 1, 2012, the first day that applications will be accepted.  It is anticipated that all funds will be allocated to films filing on that date.

The California Film Commission supports film, TV and commercial productions with a variety of services, including an extensive digital location library, free on line permitting, low cost use of state properties as shooting locations, and production assistance.  California is home to over 50 local film offices that coordinate with the state film commission.  These regional offices can be found on the CFC’s website.

There is no sales tax on production services and there is a waiver of the state lodging tax.  Most cities waive the local lodging tax after 30 days.

6.25% percent sales tax exemption on the purchase or lease of postproduction equipment for qualified persons. (Exemption is taken by the seller of the equipment and passed on to the buyer at the point of purchase.)

San Francisco has its own innovative programs, including Scene in San Francisco, which offers a refund of fees paid to City Departments for the use or rental of City property, equipment or employees, plus refunds of all daily use fees paid to the San Francisco Film Commission, and all payroll taxes paid to the City and County of San Francisco.  The SF Film Collective offers low-cost office space at 134A Golden Gate.  FilmHouse offers production space to local filmmakers. And the Vendor Discount program provides a discount card that is supported by many local vendors.  For details, go to http://filmsf.org.