California Code of Regulations
Title 10 - Investment
Chapter 7.75 - California Film Commission
Article 3 - California Film and Television Tax Credit Program 3.0
Section 5522 - Eligibility Determination

Universal Citation: 10 CA Code of Regs 5522

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

(a) If applicant is planning to produce a "qualified motion picture," then applicant shall ensure that the "qualified motion picture" complies with the provisions of sections 17053.98 (b)(18) and 23698 (b)(18) of the Revenue and Taxation Code and applicant must film at least seventy-five percent (75%) of principal photography days wholly in California or seventy-five percent (75%) of the total production budget shall be incurred in California.

(b) To qualify as a new television series, the television series, shall produce episodes with a running time longer than forty (40) minutes, exclusive of commercials, and with a minimum production budget of one million dollars ($1,000,000.00) per episode.

(c) To qualify as a television series that relocated to California, the television series shall meet the following criteria:

(1) Provide a certification from the applicant that the tax credit provided pursuant to this section is the primary reason for relocating to California.

(2) Produce episodes of any length, filmed its most recent season outside of California, and have a minimum production budget of one million dollars ($1,000,000.00) per episode.

(3) At least 75 percent of principal photography days of its most recent season have been filmed outside of California.

(4) For fiscal years 2021-22 and 2022-23, produced episodes of any length with a minimum budget of at least $1 million per episode, filmed at least 75% of principal photography days for at least one episode outside of California, and has not filmed more than 25% of principal photography days for any episode inside of California.

(d) To qualify as a pilot for a new television series, the pilot episode shall have a running time longer than forty (40) minutes, exclusive of commercials, shall be produced in California with a minimum budget of one million dollars ($1,000,000), and shall be the initial episode in a proposed television series.

(e) An animated production is not considered a qualified motion picture and shall not be eligible for a tax credit. Animated production means content created that does not utilize or incorporate live action footage but creates a motion picture consisting principally of computer generated or hand painted images. An animated production does not engage in principal photography and therefore does not meet the conditions for eligibility set forth in sections 17053.98(b)(13) and 23698(b)(13) of the Revenue and Taxation Code.

(f) Tax credits for a "feature film", "television series", "television series that relocated to California", "pilot" or "mini-series" shall be applied to a maximum of one hundred million dollars ($100,000,000.00) of the qualified expenditure budget. There shall be no maximum on the production budget.

(1) A one hundred million dollar ($100,000,000.00) qualified expenditure maximum applies to the 5% augmentation as per Section 5524(e) (1-3).

(2) A one hundred million dollar ($100,000,000.00) qualified expenditure maximum applies to the 10% augmentation as per Section 5524 (f)(4).

(3) A one hundred million dollar ($100,000,000.00) qualified expenditure maximum applies to the 5% augmentation as per Section 5524(g) with respect to a relocating television series.

(g) Tax credits for an independent film shall be applied to a maximum of ten million dollars ($10,000,000.00) of the qualified expenditure budget. There shall be no maximum on the production budget.

(1) A ten million dollar ($10,000,000.00) qualified expenditure maximum applies to the 5% augmentation as per Section 5524(g).

(h) Revocation of the tax credit allocation is final and shall not be subject to administrative appeal or review.

1. New section filed 7-1-2020; operative 7-1-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 27).
2. New subsection (c)(4), amendment of subsection (f) and amendment of NOTE filed 2-10-2022; operative 2-10-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 6).

Note: Authority cited: Sections 17053.98(e), 17053.98(i), 23698(e) and 23698(i), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.98 and 23698, Revenue and Taxation Code; and Section 14998.1, Government Code.

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