California Code of Regulations
Title 10 - Investment
Chapter 7.75 - California Film Commission
Article 4 - California Soundstage Filming Tax Credit Program
Section 5530 - Definitions

Universal Citation: 10 CA Code of Regs 5530

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

(a) For purposes of this Article, the definitions in Article 3, section 5520 shall apply except as otherwise provided in this section and as provided in sections 17053.98(k) and 23698(k) of the Revenue and Taxation Code.

(b) "Applicant" means any person, corporation, partnership, limited partnership, limited liability company (LLC) or other entity that is:

(1) For Phase A, principally engaged in the construction or renovation of one or more soundstages located in the state.

(2) For Phase B, principally engaged in the production of a "qualified motion picture," as that term is defined in sections 17053.98(k)(2)(B) and 23698(k)(2)(B) of the Revenue and Taxation Code, and that controls the film or television program during pre-production, production, and post-production.
(A) The Phase B applicant is the qualified taxpayer that meets the criteria specified in sections 17053.98(k)(2)(B)(iii) and 23698(k)(2)(B)(iii) of the Revenue and Taxation Code and upon final approval will receive the tax credit certificate, Form SM (August 12, 2022), hereby incorporated by reference.

(c) A "soundstage," as included in the definition of "certified studio construction project" in sections 17053.98(k)(2)(A) and 23698(k)(2)(A) of the Revenue and Taxation Code, means a building that is purpose-built, renovated, or converted for film, television and/or media production in California and has a minimum of 10,000 square feet of floor space, incorporates a permanent grid, as defined in subdivision (i), and is column-free, as defined in subdivision (e), with a clear height of at least 20 feet under the permanent grid. Ancillary buildings purpose-built, renovated, or converted including, but not limited to, accompanying production office space, mill space, workshops, and property or wardrobe storage, will be deemed part of the soundstage as long as at least one soundstage, as defined above, is also built, renovated, or converted, the space is production-related, and the ancillary buildings are on contiguous property to the soundstage.

(1) Construction on renovated and converted soundstages must be for capital improvements to the property, not repairs or maintenance.

(2) Minimum expenditures for capital improvement costs must be no less than $750,000 for a soundstage or if renovating more than one soundstage, average no less than $500,000 per soundstage.

(3) Actual construction or renovation expenditures for soundstages, not including ancillary buildings, shall be at least 70% of the total spend for the certified studio construction project.

(d) "Certified soundstage" means a soundstage that has been certified by the California Film Commission (CFC) as having met the conditions specified in section 5532 as part of a certified studio construction project and meets the conditions in section 5538, as applicable.

(e) "Column-free" means an open space entirely free of columns if used for a traditional soundstage, or an open space free of columns to such a degree that a stationary LED volume large enough for feature film and television production fits in the part of the space that does not contain columns, if used for an LED volume soundstage.

(f) "Documentary" means a film or television project dealing with factual events, that are photographed in actual occurrence or depicted through techniques including, but not limited to partial reenactment, stock footage, stills, animation, or stop-motion.

(g) "Limited series" shall be understood to have the same meaning as "miniseries," as defined in section 5520(o) of this chapter, and the terms may be used interchangeably for purposes of the California Soundstage Filming Tax Credit Program.

(h) "Non-proprietary document format" means a document format which the CFC can access and open without specialized software requiring purchase, without subscriptions, or other access keys.

(i) "Permanent grid" means a grid which is installed and functional for long-term, non-temporary use in soundstage production and shall include a smart grid which is adaptable to the circumstances of production.

(j) "Reality television program" means a program depicting real events and non-actors through actual footage which presents persons in purportedly unscripted or partially scripted situations.

(k) "Scripted series" means a fictional episodic television series based upon scripted materials.

(l) "Stage shooting day" or "stage filming day" means a principal photography day, as defined in section 5520(u) of this chapter, during which an applicant utilizes its certified studio construction project soundstage(s), or other soundstage(s) for six hours or more.

(1) For purposes of qualifying as a stage shooting day or stage filming day, time spent filming on the backlot or similar contiguous area immediately adjacent to the soundstage shall qualify.
(A) When the stage shooting day takes place on a certified studio construction project soundstage or soundstages, or backlot or similar contiguous area immediately adjacent to the soundstage, as specified in paragraph (1) of this subdivision, qualified wages shall apply with respect to the soundstage wages required by section 5531(d)(2), pursuant to sections 17053.98(k)(2)(B)(ii) and 23698(k)(2)(B)(ii) of the Revenue and Taxation Code.

(2) "Filming" and "shooting" shall be understood to have the same meaning when used in reference to the California Soundstage Filming Tax Credit Program and may be used interchangeably.

(m) "Television series that relocated to California" has the same definition as in sections 17053.98(b)(25) and 23698(b)(25) of the Revenue and Taxation Code; also known as a Relocating TV series.

Note: Authority cited: Sections 17053.98(k)(10) and 23698(k)(10), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.98(k)(2), 17053.98(b), 23698(k)(2) and 23698(b), Revenue and Taxation Code; and Section 14998.1, Government Code.

Note: Authority cited: Sections 17053.98(k)(10) and 23698(k)(10), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.98(k)(2), 17053.98(b), 23698(k)(2) and 23698(b), Revenue and Taxation Code; and Section 14998.1, Government Code.

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