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 5525 - Approved Applicant Responsibility-Phase III
Universal Citation: 10 CA Code of Regs 5525
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) An applicant issued a credit allocation letter shall be required to comply with the following during the production period:
(1) On the
first day of principal photography and after a hiatus period, if applicable, submit
by email to the CFC the daily call sheet, signed by the production manager or
equivalent position, in PDF or equivalent format.
(2) Each week or as available, submit by email to
the CFC the final production reports for each day of principal photography, signed
by the Unit Production Manager or equivalent position, in PDF or equivalent
format.
(3) If applicable, submit an
email notification to the CFC indicating any significant changes to the project
including anticipated changes in the estimated qualified expenditures, change of
start date, shooting location, number of television episodes ordered, title change
of project, financing, key personnel or any other factors that have significantly
changed since issuance of the CAL.
(4)
Participation in career-based learning and training programs and public service
opportunities approved by the CFC in consultation with the California Department of
Education (CDE) and/or California Community College Chancellor's Office (CCCCO)
aimed at exposing career-based learning program, high school, community college, and
California State University students to jobs in the entertainment industry. To
demonstrate compliance with this requirement the applicant must submit the
applicable form for Career Readiness verification, Form CR1, CR2, CR3, CR4, or CR5
(July 28, 2023), hereby incorporated by reference, to the CFC as soon as the
career-based learning and training program or public service opportunity has
concluded. To meet the requirements of this section, the applicant may do any of the
following:
(A) Provide to students enrolled within
the past twelve months in an accredited California high school, community college,
California State University, or career-based learning program three (3) paid
internship positions for a minimum of one hundred (100) hours each or a combination
of internships or internship with a minimum of one hundred (100) hours per student
and three hundred (300) hours in total. Interns must be 18 years of age or older.
Internship experience must include working with professionals in the film industry
and hands-on work assignments; or
(B)
Provide to students enrolled within the past twelve months in an accredited
California high school, community college, California State University, or
career-based learning program classroom workshops, panels, or demonstrations on
aspects of the film industry, which may include but is not limited to set
operations, post-production and specific technical crafts conducted by entertainment
industry professionals; or
(C) Provide
to students enrolled within the past twelve months in an accredited California high
school, community college, California State University, or career-based learning
program a minimum of eight (8) hours of professional skills tours, which may include
visits to observe set operations, set construction, wardrobe department, art
department and editorial department; or
(D) Provide a minimum of eight (8) hours of
continuing education for educators and/or faculty to observe the set operations,
post-production, and other specialized departments in the film industry;
or
(E) Make a financial contribution to
a specific local or state educational agency or higher education institution
specializing in arts, media, and entertainment career oriented programs. The
contribution shall be based on 0.25 percent of the estimated tax credit reservation
with a minimum financial contribution of $5,000 and a maximum required financial
contribution of $12,000. (Note: An applicant may contribute an amount in excess of
the maximum); or
(F) Provide a learning
opportunity or financial contribution of equal time or value through other arts,
media, and entertainment programs, workforce programs, etc. which are not affiliated
with CCCCO or CDE and is approved by the CFC.
(5) Make a financial contribution to fund a pilot
career pathways training program to a non-profit fiscal agent as determined by CFC.
(A) The contribution shall be based on 0.25
percent of the estimated tax credit reservation as stated on the CAL.
(B) The contribution shall be submitted to the CFC
with the career pathways program form, Form CPP (New. July 28, 2023), hereby
incorporated by reference, no later than thirty (30) business days after the CAL
date; failure to submit the contribution within this time frame will result in
revocation of the CAL.
1. An applicant facing a
technical or funds-related barrier to meeting the deadline may request an extension
of up to ten (10) business days and the CFC will grant the extension if the
applicant requests such an extension prior to the expiration of the timeframe
specified in subparagraph (B) above and provides supporting documentation.
(C) The contribution is refundable if
the project does not receive a tax credit certificate. A portion may also be
refundable if the tax credit amount is significantly reduced due to reasonable cause
as per Section 5520(y).
(D) A qualified motion picture that receives an
increase in allocated tax credits, causing an additional contribution sum to become
due, shall make a payment of that additional sum within thirty (30) business days of
notification of that increase in allocation.
(E) The contribution must be made by business or
personal check. No other payment options will be accepted.
Note: Authority cited: Sections 17053.98(e) and 23698(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95, 17053.98, 23695 and 23698, Revenue and Taxation Code; and Section 14998.1, Government Code.
Note: Authority cited: Sections 17053.98(e) 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.
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