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 5514 - Credit Certificate Issuance Process

Universal Citation: 10 CA Code of Regs 5514

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

(a) The applicant shall be required to submit the following documents upon completion of the qualified motion picture, in an electronic format and /or hard copy, as directed by the CFC:

(1) Proof of copyright registration of the screenplay, teleplay, motion picture, television series or television movie.

(2) Documentation indicating the date of completion of postproduction. Documentation may include, but not be limited to, the facility invoice evidencing the date the final element was completed or other reasonable documentation as determined by the CFC.

(3) List of all Cast, Crew, and Vendors for the project.

(4) Copy of Script Supervisor's Lined Script of the project. TV series must submit episodes 1 and 5 of the series.

(5) Expenditure Summary Report as set forth on the CFC website, CFC Form FF-1 (Non-Independent Production) (Rev. 1/25/2016), CFC Form FF-2 (Independent Films) (Rev. 1/25/2016), hereby incorporated by reference.

(6) An agreed upon procedures report in compliance with the Agreed Upon Procedures (Rev. 1/25/2016) hereby incorporated by reference. The agreed upon procedures report shall be prepared and certified by a certified public accountant (CPA) who meets the following criteria:
(A) Maintains an active license or has proof of a valid out-of-state accounting firm registration for the firm practicing attest services in California.

(B) The accounting firm performing the attest services shall provide documentation from the California Society of Certified Public Accountants or other organization administering said review, indicating that a Peer Review Report was completed within the last three years and the rating was a Pass. If the firm performing attest services is newly formed, the firm must provide evidence it is registered for review by an organization administering the review in the state in which the firm resides.

(C) Successful completion of a California Film Commission Orientation Meeting for CPAs performing Agreed Upon Procedures for the California Film and Television Tax Credit Program 2.0. The frequency of training shall be offered on an as needed basis as determined by the CFC.

(7) The actual layout of the main and end titles produced by a title house or other postproduction facility.

(8) Documentation from each visual effects, title digital effects and/or post sound company contracted by the production company, indicating the total dollar amount of work performed within the State of California shall be certified by managerial level personnel with knowledge of the project.

(9) Documentation from the designated representative of the California Community Colleges Chancellor's office and/or the California Department of Education or the CFC, verifying participation in a career-based learning and training program as required in Section 5513(a)(4).

(10) A movie of the week shall submit documentation verifying its initial distribution on television or via internet transmission with a minimum of seventy-five (75) minutes exhibited in one part, excluding commercials.

(11) A miniseries shall submit documentation verifying that its initial distribution on television or via internet transmission consists of two or more episodes with a total running time of at least one hundred fifty (150) minutes.

(12) Revised and/or updated information, as applicable, to the documentation requested in sections 17053.95(g)(2)(A)(v)-(x) and 23695(g)(2)(A)(v)-(x) of the Revenue and Taxation Code in an electronic format as specified by the CFC.

(b) The production shall be completed in a timely manner as required in sections 17053.95(b)(18)(B)(ii) and 23695(b)(18)(B)(ii) of the Revenue and Taxation Code.

(c) The Qualified Motion Picture shall be considered complete when the process of postproduction has been finished and a final composite answer print, delivery air master, or digital cinema files of the qualified motion picture is completed.

(d) The CFC shall review all the required materials submitted by the applicant to determine the sufficiency of the required documentation and that the applicant meets all the criteria for the program. During the review, the CFC may reject insufficient documentation not in compliance with the requirements found in this section or may request additional documentation to determine if the production is a qualified motion picture and to verify the qualified expenditures. The CFC shall approve or disapprove the request for the tax credit certificate.

(e) Upon rejection of insufficient documentation or disapproval of the request for a tax credit certificate, the CFC shall provide the applicant with a notice of disapproval stating the reasons for the disapproval. Disapproval is final and shall not be subject to administrative appeal or review.

(f) Upon approval, the tax credit certificate, CFC Form MM, (Rev. 11/17/15), hereby incorporated by reference, shall be issued to the applicant beginning on July 1, 2016. If the entity that incurs the qualified expenditures is a partnership, limited liability company or subchapter S corporation (pass-through entity), that entity is the applicant for purposes of filing the tax credit application and receiving the final tax credit certificate.

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, including amendment of subsections (a), (a)(4)-(5), (a)(5)(B), (a)(7) and (a)(11); 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 further amendment of section, 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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