Film & TV Tax Credit Program 3.0

Tax Credit Program 3.0

Program 3.0 

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COMPARISON CHART: Program 2.0 vs. Program 3.0

Sunset Date

June 30, 2020

June 30, 2025

Funding

$330M per Fiscal Year

No change.

Funding Categories

  • 40% TV Series, Pilots, Mini-series, MOWs
  • 35% Non-independent Films
  • 20% Relocating TV Series
  • 5% Independent Films
  • 40% TV Series, Pilots, Mini-Series
  • 35% Non-independent Films
  • 17% Relocating TV Series
  • 8% Independent Films
    Independent film funding split between projects with budgets under $10m and over $10m.

Tax Credit Allocation Percentage

  • 25% Indies and Relocating TV
  • 20% Non-Indies
    Additional 5% “Uplift”
    • Filming Outside 30-Mile Zone
    • Visual Effects Expenditures
    • Music Scoring/Recording        Expenditures
  • 25% Indies and Relocating TV
  • 20% Non-Indies
    Additional 5% “Uplift”
    • Filming Outside 30-Mile Zone
    • Visual Effects Expenditures
    • Eliminates 5% for
    • Music Scoring/Recording
    • 5% Additional for Local Hires Working Out-of-Zone

Application Selection

Jobs ratio ranking within specific categories.

Jobs ratio ranking within specific categories; allows 70% of qualified Visual Effects expenditures paid to 3rd party vendors shall be treated as wages.

Career Training

Career Readiness Requirement

Career Readiness requirement, PLUS:  Establishes pilot skills training for individuals from underserved communities to prepare for jobs in the industry; fee paid by applicants to fund training. Training fund to be administered by a non-profit fiscal agent; CFC to engage labor/management jointly administered training programs with skills training focused on entertainment industry jobs.

Deadline to Begin Filming

180-day Rule: Productions must begin filming within 180 days of credit allocation letter.

180-day Rule: Productions must begin filming within 180 days of credit allocation letter; for projects with budgets over $100M, must begin filming within 240 days.

Penalty for Overstatement of Jobs Ratio

Different penalties for Non-Independent and Independents.

Same penalty for Non-Independent and Independents.

Reallocation of Funds Between Categories

  • Surplus from Relocating TV funds must go to general TV Pot.
  • CFC may move excess funds within 60 days of an allocation period.
  • CFC may move 5% of funds to category with greater demand.

Any surplus must go to general TV Pot at the end of the fiscal year, (except Independent Film surplus stays within same category.)

Bonus Points

Include facility usage as bonus point factor.

  • Eliminate facility usage as bonus point factor.

  • Add music scoring as bonus point factor.

Carry Forward

Taxpayer may carry forward tax credit for 5 years.

Taxpayer may carry forward tax credit for 8 years.

Relocating TV Eligibility

Must have filmed most recent season outside of CA. 

Must have filmed at least 75% of most recent season outside of CA.

Movies-of-the-Week

Eligible type of production.

Omit Movie-of-the-Week; this production type may apply as feature film category.

Unallocated Credits

After sunset date, CFC may not allocate unused credits.

  • CFC may allocate unused credits from Programs 1.0 and 2.0.

  • After sunset date of 3.0, CFC may continue to allocate unused credits from all 3 programs.

Anti-Harassment Provision

None.

Requires approved applicants to provide their written policy against unlawful harassment which includes procedures for reporting and investigating harassment claims. Applicants shall indicate how policy will be distributed to employees and include education training resources and remedies available.

Diversity Reporting

Requires approved applicants to provide statistics on the diversity of the workforce employed.

A summary of the applicant’s voluntary programs to increase the representation of women and minorities including a description of what the program is designed to accomplish and information about how the programs are publicized to interested parties.  This requirement is waived for independent films with qualified expenditures of ten million dollars ($10,000,000) or less.


California Film Commission
7080 Hollywood Blvd., Suite 900
Hollywood, CA 90028
Tel: 323.860.2960 | 800.858.4749


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California Film Commission
7080 Hollywood Blvd., Suite 900
Hollywood, CA 90028
Tel: 323.860.2960 | 800.858.4749


Email the CFC
| About Us

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California Film Commission
7080 Hollywood Blvd., Suite 900
Hollywood, CA 90028
Tel: 323.860.2960 | 800.858.4749
Email the CFC | About Us

Stay Informed! Sign Up:
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Production Alerts

Careers

Follow Us!

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