Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) For Phase
A, the application shall include the information set forth below:
(1) Section 1: Applicant information.
(A) Applicant entity and taxpayer ID
number.
(B) Identify if the applicant is
a corporation, limited liability company, individual proprietorship, subchapter S
corporation, partnership, or other.
(2) Section 2: Contact information.
(A) Enter the contact type and provide the contact
name, title, address, email and phone for each of the following, as applicable:
applicant contact, primary contact, production company contact, parent company
contact, and contact information for the Certified Public Accountant (CPA) firm
which will provide the required report for the soundstage(s).
(3) Section 3: Applicant eligibility attestation.
(A) The applicant must attest that it has not
received a California Competes Grant under section
12096.6 of the
Government Code for wages or investment related to construction of the studio
construction project.
(4)
Section 4: Studio construction project certification.
(A) To enable the CFC to certify that a studio
construction project met the requirements of sections
17053.98(k),
23698(k),
and
17053.99
of the Revenue and Taxation Code, the applicant must provide a third-party Certified
Studio Construction Project Verification Report performed by a CPA firm, which meets
the requirements specified in subdivision (a)(4)(B) of this section, documenting
compliance with the requirements of the California Soundstage Filming Tax Credit
Program.
1. A studio construction project may
include the construction or renovation of more than one soundstage located in the
state. Applicants may provide separate reports for each soundstage construction or
renovation project or a comprehensive report for all soundstage construction or
renovation projects that make up each studio construction project. Regardless of
whether the applicant submits one or multiple reports for the soundstage
construction or renovation projects, the comprehensive studio construction project
must, in aggregate, meet the definition and criteria in Revenue and Taxation Code
sections
17053.98(k)(2)(A)
and
23698(k)(2)(A)
to be eligible as a certified studio construction project.
2. The public accounting firm performing the
Certified Studio Construction Project Verification Report may, but is not required
to, use the optional California Soundstage Filming Tax Credit Program Phase A Agreed
Upon Procedures, Phase A AUP (August 12, 2022), hereby incorporated by
reference.
(B) The public
accounting firm performing the Certified Studio Construction Project Verification
Report for an applicant shall provide documentation that a peer review was
administered by the American Institute of Certified Public Accountants ("AICPA")
National Peer Review Committee ("NPRC") within the last three years and that the
peer review resulted in a rating of "Pass." This documentation shall include the
firm's most recent peer review report and the acceptance of that report by the
NPRC.
(C) The public accounting firm
performing the Certified Studio Construction Project Verification Report for an
applicant may also perform the annual soundstage workforce certification required
pursuant to section
5538 for that applicant. However, the
same public accounting firm is not permitted to perform the report based on the
California Soundstage Filming Tax Credit Program Agreed Upon Procedures, Soundstage
AUP, (August 28, 2023), hereby incorporated by reference, required pursuant to
section 5540 for a Phase B applicant filming on
a soundstage or soundstages approved as part of a certified studio construction
project for which the public accounting firm is providing or has provided services
related to Phase A.
(5)
Section 5: Supporting documentation.
(A) Project
labor agreement, if applicable.
(B) A
description of the studio construction project for which certification is sought,
including a map with each soundstage identified by name or number as well as
identification of any ancillary buildings.
(C) Copies of any and all foundation permits or
structural building permits for the studio construction project, including the dates
they were issued.
(b) Within thirty (30) business days of receipt of
the completed application and all supporting documents required pursuant to
subdivision (a) above, the Director of the CFC, or their designee, will notify the
applicant whether its Phase A submission is approved or rejected. An eligible
applicant fulfilling all Phase A application requirements and applying within the
permitted timeframe specified in subdivisions (b) and (c) of section
5539 of this article will be approved.
Upon approval, the CFC will issue the applicant an SCL, Form SCL (August 12, 2022),
hereby incorporated by reference, for each certified soundstage and ancillary
building or group of buildings. The SCL will include a unique identifier for every
soundstage certified as part of the applicant's certified studio construction
project. Upon issuance of an SCL, the producer of a qualified motion picture may
submit a Phase B application. If rejected for application deficiencies that may be
remedied, a Phase A applicant may remedy any deficiencies noted by the CFC in its
submission and re-apply. The date of receipt of additional information to remedy any
deficiencies will be considered the new submission date of the Phase A application.
If the applicant is rejected due to noncompliance with statutory or regulatory
requirements, the applicant may not reapply for the same studio construction
project.
(c) Pursuant to sections
17053.98(k)(2)(A)
and
23698(k)(2)(A)
of the Revenue and Taxation Code, the period of certification for a soundstage or
soundstages that are part of a certified studio construction project shall be five
(5) years.
(1) A once certified soundstage for
which the period of certification has expired may still be utilized by a project
applying for an allocation of credits under the California Film and Television Tax
Credit Program 3.0 or its successor programs pursuant to and in accordance with
sections
17053.98(k)(8)(D)
and
23698(k)(8)(D)
of the Revenue and Taxation Code and as outlined in subdivision (h) of section
5539 of this article.
(2) A Phase A applicant may apply for an extension
of the period of certification for a soundstage that is part of its certified studio
construction project by submitting a written request to the CFC to pause the period
of certification due to a Force Majeure event, as defined in subdivision (i) of
section 5520 of this chapter.
(A) A Force Majeure extension request
substantiated in accordance with subparagraph (B) below may be granted for either:
1. An indirect cause, which is a cause that
prevents a qualified motion picture project intending to utilize the soundstage and
applying for an allocation of credits under the California Soundstage Filming Tax
Credit Program from moving forward with its planned application and use of the
soundstage, such as, but not limited to, delays caused by breach by the motion
picture director or a principal cast member or a labor disruption; or,
2. A direct cause, which is a cause that prevents
the use of the soundstage by any entity for any film and television production
purpose, such as, but not limited to, damage caused by fire, flood, earthquake,
storm, hurricane, or other natural disaster.
(B) The CFC will review the written request to
pause the period of certification and any supporting documentation and grant the
request if the applicant provides evidence of a Force Majeure disruption in
accordance with paragraph (2) above or deny the request if the applicant fails to
provide evidence of a Force Majeure disruption in accordance with paragraph (2)
above.
1. For purposes of this subdivision, to
"pause the period of certification" means to tally the time during which a Force
Majeure disruption impacting a soundstage with an approved request is in effect and
extend the original period of certification by that amount of time.
(i) A Force Majeure extension request that has
been granted for an indirect cause, as defined in clause 1. of subparagraph (A)
above, will be in effect from the date of approval until the end-date of the Force
Majeure disruption, or until the date the soundstage is in use, whichever comes
first. The Phase A applicant must notify the CFC whenever a certified soundstage
that was granted a Force Majeure extension for indirect cause is in use.
(ii) A Force Majeure extension request that has
been granted for a direct cause, as defined in clause 2. of subparagraph (A) above,
will be in effect from the date of approval until the soundstage is considered safe
for use by the applicant. The Phase A applicant must notify the CFC whenever a
certified soundstage that was granted a Force Majeure extension for direct cause is
safe for use, whether it is in use or not.
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)(1), 17053.98(k)(2), 17053.98(k)(10),
17053.98(k)(12), 17053.99, 23698(k)(1), 23698(k)(2), 23698(k)(10) and 23698(k)(12),
Revenue and Taxation Code; and Sections 12096.6 and 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)(1),
17053.98(k)(2),
17053.98(k)(10),
17053.98(k)(12),
17053.99,
23698(k)(1),
23698(k)(2),
23698(k)(10)
and
23698(k)(12),
Revenue and Taxation Code; and Sections
12096.6 and
14998.1,
Government Code.
