Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The
qualified expenditures shall be allowed as provided in sections 17053.98(b)(16) and
23698(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 17053.98(b)(15) and 23698(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. 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 17053.98(b)(21)(B) and
23698(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
5526(b)(6).
(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 including, 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.
(6) Financial contribution expenditures related to
the pilot career pathways training program.
Note: Authority cited: Sections 17053.98(b), 17053.98(e),
23698(b) and 23698(e), 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.
Note: Authority cited: Sections
17053.98(b),
17053.98(e),
23698(b)
and
23698(e),
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.
