California Code of Regulations
Title 10 - Investment
Chapter 7.75 - California Film Commission
Article 2 - California Film and Television Job Retention and Promotion Act California Film and Television Tax Credit Program 2.0
Section 5511 - Qualified Expenditures

Universal Citation: 10 CA Code of Regs 5511

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) The qualified expenditures shall be allowed as provided in sections 17053.95(b)(16) and 23695(b)(16) of the Revenue and Taxation Code.

(1) Qualified Wages shall also include payments to a qualified entity to the extent its services are performed in California, including, but not limited to, Qualified Expenditures as defined in sections 17053.95(b)(15) and 23695(b)(15) of the Revenue and Taxation Code. Examples of Qualified Expenditures are set forth on the Qualified Expenditure Charts as identified on the CFC website which may be updated periodically. These charts are only provided as a reference for the applicant and should not be considered conclusive or limiting.

(b) The non-qualifying expenditures are as provided in sections 17053.95(b)(21)(B) and 23695(b)(21)(B) of the Revenue and Taxation Code. The following expenses shall not be allowed as qualified expenditures:

(1) State and federal income taxes.

(2) Certified public accountant expenses for the report required in Section 5514(a)(5).

(3) Expenditures for rentals or purchases outside the state regardless if used in the state, and services performed outside the state are not considered qualified expenditures such as, but not limited to, digital visual effects work which is physically performed out-of-state.

(4) Expenditures for the exhibition of the qualified motion picture, including, but not limited to, digital cinema distribution copies and release prints.

(5) Expenditures incurred thirty (30) days after the creation of the final elements, such as, but not limited to, composite answer print, air master, and digital cinema files. Creation of additional versions for foreign distribution and/or archival purposes are not considered final elements.

1. New section filed 4-13-2015 as an emergency; operative 4-13-2015 (Register 2015, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-12-2015 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-15-2015 as an emergency; operative 10-15-2015 (Register 2015, No. 42). A Certificate of Compliance must be transmitted to OAL by 1-13-2016 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-7-2016 as an emergency; operative 1-7-2016 (Register 2016, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-6-2016 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-7-2016 order, including amendment of subsections (a)(1) and (a)(5), transmitted to OAL 3-29-2016 and filed 5-11-2016; amendments operative 5-11-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 20).

Note: Authority cited: Sections 17053.95(e) and 23695(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95 and 23695, Revenue and Taxation Code; and Section 14998.1, Government Code.

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