2.0 Jobs Ratio Ranking
Eligible projects applying in the Tax Credit Program are reviewed according to the project’s jobs ratio. The jobs ratio ranking is statutorily mandated process to identify projects which are most likely to increase jobs and economic activity in the state.
Applicants’ jobs ratios are ranked within the same project category: New/Recurring TV, Relocating TV, Feature Films, and Independent Films over and under $10m.
Base Jobs Ratio
The first calculation in the formula involves adding the qualified wages to 35% of the qualified expenditures. That sum is divided by the estimated tax credit amount.
The base jobs ratio may be increased based on activities in three areas: out-of-zone filming, visual effects spend, and music labor expenditures.
Adjusted Jobs Ratio
The final calculation used to determine a project’s ranking as compared to other like categories is known as the adjusted jobs ratio.
Bonus Points are determined by the percentage of principal photography days outside the Los Angeles 30-mile zone in relation to total principal photography days in-state.
Bonus points for Visual Effects are based on services performed in-state. Please refer to the applicable Qualified Expenditure Chart to determine which expenditures qualify for the bonus points. There is no minimum VFX spend requirement with respect to bonus points.
Production Facility Days
Bonus points are based on the percentage of principal photography days at a facility in relation to total principal photography days in-state. To accrue these bonus points, filming must occur at an approved facility, if in the Los Angeles zone. (For facilities outside the L.A. Zone, contact the CFC for a determination.) To qualify as a “Facility Day”, the facility must be utilized by the 1st unit for a minimum of 6 hours. Please refer to Production Facilities for a list of approved facilities.
How a Project is Ranked
- The Film Commission determines the amount of tax credits available for each category prior to each application period.
- A list of finalists is determined for each category once the application period closes.
- This list includes those projects that would be selected (based on their jobs ratio score) if the allocation of tax credits for the category was double (or 200%) the predetermined amount.
- The Film Commission references these finalists as “the top 200% projects.”
- These projects advance to “Phase II” of the selection process for further evaluation.
- When Phase II process is complete (about 3 weeks), the highest ranked projects (top 100%) receive a Credit Allocation Letter indicating the amount of tax credits reserved.
- Remaining projects in Phase II are placed on the waitlist according to their jobs ratio score.
- The waitlist expires when the next allocation period for the same category begins.