Big-Budget Films Continue California Comeback via State’s Tax Credit Program

Latest Round of Film Projects Will Create Thousands of Jobs and an Estimated $915 Million in Spending Across the Golden State

Hollywood, Calif. – August 22, 2022 – Big-budget film production continues to bounce back in California thanks to the state’s Film & Television Tax Credit Program.

The California Film Commission today announced the latest round of tax credit projects includes four big-budget films and 14 independent films that together are on track to generate an estimated $915 million in overall production spending across the state. The overall figure includes $503 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 four big-budget films are:

• “Joker: Folie à Deux” ($98.7 million in qualified spending)
• “Rebel Moon Part 2” ($83 million in qualified spending)
• “The Thomas Crown Affair” ($87.9 million in qualified spending)
• Untitled NF Project ($107.7 million in qualified spending)

Combined, these four films alone will generate $377 million in qualified spending and $748 million in overall spending in California.

“We are thrilled to continue welcoming the kind of big budget films that used to be so susceptible to runaway production,” said California Film Commission Executive Director Colleen Bell. “In addition to our incentive, we have the best talent, crews, infrastructure, locations, weather and so much more. California is ready to help filmmakers make the most of all we have to offer.”

“Joker: Folie à Deux” Director/Writer/Producer Todd Phillips affirmed, “No other city has more resources than L.A. when it comes to our industry, and to have this kind of support for the work we do from the California Film Commission’s Film & Television Tax Credit Program is a nice welcome for all of us on Joker: Folie à Deux. Having spent the last several years filming in iconic locales here in the U.S. and around the globe, I’m looking forward to returning to work in the place I call home and to serving the state by bringing a project of this scope to California.”

In addition to big-budget projects, the latest round of tax credits includes 14 independent films — five with qualified spending of over $10 million, and nine with qualified spending of $10 million or less.

In all, the independent and non-independent film projects announced today will employ an estimated 2,544 crew, 596 cast and 28,767 background actors/stand-ins (the latter measured in “man- days”). They will also generate significant postproduction jobs and revenue for California VFX artists, sound editors, sound mixers, musicians and other workers/vendors.

Production for the 18 projects is set to occur over a combined 718 filming days in California, with 218 days (just over 30 percent) planned outside the Los Angeles 30-Mile Studio Zone (see “Allocation # 2 Out of Zone Filming” chart below). This continues a long-term trend of bringing production jobs and spending to regions across the state. Filming for the 18 projects is planned in at least 10 California counties – from San Francisco and Kern to San Diego.

Out-of-zone filming will be led by “Thomas Crown Affair,” with 30 of its 54 filming days planned in San Francisco County. The two prior versions of the popular romance thriller were shot primarily in and around Boston (1968 version) and New York City (1999 version).

The California Film Commission received a total of 57 applications during the July 18 – 25 feature film tax credit application period. It has reserved a total of $93.7 million in tax credit allocation for the 18 conditionally approved projects (see “Fiscal Year 3 – Allocation # 2 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 wait list.

The next application period for feature films will be held January 30 – February 6, 2023. The next application period for TV projects will be held September 19 – 26, 2022.

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 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).

Most recently, Governor Newsom has voiced his support for SB 485, which will extend California’s Film & TV Tax Credit Program an additional five years through fiscal year 2029-2030.

Contact: Erik Deutsch, ExcelPR Group (for the California Film Commission)
(323) 851-2455 direct / erikd@excelpr.com

SEE CHARTS BELOW

California Film & TV Tax Credit Program 3.0

Fiscal Year 3 – Allocation # 2 Conditionally Approved Projects

California Film & TV Tax Credit Program 3.0

Allocation # 2 Out of Zone Filming

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

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