Tax Credits Bring More Big-Budget Films Back to California

Latest Round of Projects Will Spend an Estimated $1.17 Billion in the Golden State, Including $774 Million in ‘Qualified’ Spending for Below-the-Line Workers and In-State Vendors; Two-Thirds of Projects Plan Significant Out-of-Zone Filming to Bring Production Statewide

Hollywood, Calif. – February 28, 2022 – The California Film Commission today announced the latest round of film projects for the state’s Film & TV Tax Credit Program, affirming the Program’s effectiveness in achieving three of its key goals: bringing more big-budget films back to California, spreading production activity across the state, and ensuring incentives are available to independent projects with a range of budgets.

In all, 30 film projects (19 independent, 11 non-independent) were selected for the latest round of tax credits. Based on data provided with each tax credit application, they will bring an estimated $1.17 billion in combined production spending to California, including $774 million in “qualified” spending (defined as wages to below-the-line workers and payments to in-state vendors). Only the qualified portion of each project’s budget is eligible for tax credits under California’s uniquely targeted incentive program.

The projects announced today include four big-budget films* — “Atlas,” “Beverly Hills Cop 4,” “Unfrosted” and Untitled Amazon Studios Movie — which alone will spend an estimated $553 million in California, including $439.2 million in qualified spending.

“Filmmakers want to work here in the Golden State and understand that chasing the highest

incentive doesn’t ensure the best value,” said California Film Commission Executive Director Colleen Bell. “We’re leveling the playing field for the types of big-budget films targeted so aggressively by jurisdictions with more sweeping incentive programs.”

Jerry Seinfeld, writer/director/star of “Unfrosted” added, “We are so happy to get the California tax credit which enables us to make our whole movie there. Having made all of the ‘Seinfeld’ series in LA, I very much wanted to come back and shoot there again. On behalf of everyone working on the movie, we really appreciate the great welcome.” The project will generate an estimated $69.4 million in qualified spending.

The 30 projects announced today will employ an estimated 4,564 crew, 1,212 cast and 48,646 background actors/stand-ins (the latter measured in “man-days”). They will also generate significant post-production jobs and revenue for California VFX artists, sound editors, sound mixers, musicians and other workers/vendors.

“I’m so excited that our film has been awarded the California tax credit,” said Jennifer Garner of “Family Leave,” which will generate $47.2 million in qualified spending. “As an actor, producer and mother, it’s impossible to overstate what shooting locally means to me and other families in this industry. I’ve been lucky to work with some of the greatest crew members of my career here in California, and I’m looking forward to reconnecting with some of my home team friends on this project.”

The 30 tax credit projects will account for a combined 1,095 filming days in California, with 327 of those days (nearly 30 percent) planned outside the Los Angeles 30-Mile Studio Zone (see “Fiscal Year 2 – Allocation # 4 Conditionally Approved Projects: Out of Zone Filming” chart below). This figure represents the highest number of out-of-zone filming days for any round of projects in the history of California’s tax credit program, and it continues the long-term trend of bringing more production activity statewide.

Filming is planned to occur in 16 different counties across the state – from San Diego to Humboldt and Marin to Kern. Out-of-zone days for the latest round are led by “The Long Walk” (with all 40 days of its filming outside the zone) and “Dope Little Creatures” (with all 33 of its filming days outside the zone).

“Our tax credit program continues to bring jobs and opportunity statewide,” added Bell. “The current round of projects will directly impact more regions of the state than any round in the program’s history, and that’s a terrific milestone.”

The California Film Commission received a total of 76 applications during the January 24 – 31 feature film tax credit application period. It has reserved $149.2 million in tax credit allocation for the 30 conditionally approved projects (see “Fiscal Year 2 – Allocation #4 Conditionally Approved Projects” chart below). The list of approved projects is subject to change, as applicants may withdraw from the tax credit program and their reservation of credits is reassigned to one or more projects on the waitlist.

The next application period for feature films will be held July 18 – 25. The next application period for recurring and relocating TV series will be held March 7-14.

* “Beverly Hills Cop 4” was accepted into a prior tax credit allocation and reapplied for the current round of film credits.

About California’s Film and Television Tax Credit Program
In 2014, the California legislature passed a bill that more than tripled the size of the state’s film and television production incentive, from $100 million to $330 million annually. Aimed at retaining and attracting production jobs and economic activity across the state, the California Film and TV Tax Credit Program 2.0 also extended eligibility to include a range of project types (big-budget feature films, TV pilots and 1-hr. TV series for any distribution outlet) that were excluded from the state’s first-generation tax credit program. Program 2.0 also introduced a “jobs ratio” ranking system to select projects based on “qualified” spending (e.g., wages paid to below-the-line workers and payments made to in-state vendors). To spur production statewide, an additional five percent tax credit was made available to non- independent projects that shoot outside the Los Angeles 30-Mile Studio Zone or that have qualified expenditures for visual effects or music scoring/track recording. The five-year Program 2.0 went into effect on July 1, 2015 and wrapped its fifth and final fiscal year (2019/20) on June 30, 2020.

The third generation of the California Film and TV Tax Credit Program (dubbed “Program 3.0”) was launched on July 1, 2020. New provisions include a pilot skills training program to help individuals from underserved communities gain access to career opportunities. Program 3.0 also adds provisions requiring projects to have a written policy for addressing unlawful harassment and enhanced reporting of above and below-the-line cast and crew employment diversity data.

More information about California’s Film and Television Tax Credit Program 3.0, including application procedures, eligibility, and guidelines, can be found at http://www.film.ca.gov/tax-credit/.

Recent Changes to Program 3.0 Following Passage of Senate Bill 144
Signed into law by Governor Gavin Newsom on July 21, SB 144 has several key provisions including an additional $15 million per year (for two years) increase in tax credits reserved specifically for relocating TV series, bringing total annual funding for relocating series to $71.1 million (up from $56.1 million). In addition, the criteria to qualify as a relocating TV series has been relaxed to include series that filmed their pilot episode out-of-state (the tax credit program previously required relocating series to film an entire season out-of-state).

Fiscal Year 2 – Allocation # 4 Conditionally Approved Projects

 *Project previously accepted into a prior tax credit allocation and reapplied for the current round of film

California Film & TV Tax Credit Program 3.0
Fiscal Year 2 – Allocation #4 Conditionally Approved Projects

Out of Zone Filming

Erik Deutsch
ExcelPR Group (for the California Film Commission)
(323) 851-2455 direct
Email Erik, HERE

Explore more articles by category:  Press Releases  |  Production Alerts  |  Newsletters