California Code of Regulations
Title 10 - Investment
Chapter 7.75 - California Film Commission
Article 4 - California Soundstage Filming Tax Credit Program
Section 5539 - Tax Credit Allocation

(a) The California Soundstage Filming Tax Credit Program allows for a qualified taxpayer that meets all eligibility criteria and submission requirements under this Program to receive a credit against the "net tax," as defined in Revenue and Taxation Code section 17039, or the "tax," as defined in Revenue and Taxation Code section 23036.

(b) The tax credit awarded under this Program is allowed for taxable years beginning on or after January 1, 2022, and before January 1, 2032, and the total amount of credits that may be allocated under this Program is one hundred fifty million dollars ($150,000,000).

(c) Once approximately seventy-five percent (75%) of the Program's available credit funding has been reserved, the CFC will issue a production alert and post on its website that the Program is nearing reservation of its full funding and will cease to accept applications for Phase A on the date that is 30 business days after issuance of the production alert and website post (the "designated date"). Phase A applications will only be accepted after the designated date for soundstage construction or renovation projects that were issued a foundation permit or a structural building permit as per Revenue and Taxation Code sections 17053.98(k)(2)(A)(iv) and 23698(k)(2)(A)(iv) and through the designated date. No other Phase A applications will be accepted unless and until the Program receives additional funding.

(d) The tax credit awarded under this Program, subject to allocation by the CFC, will be in an amount equal to 20 percent or 25 percent, whichever is the applicable credit percentage described in Revenue and Taxation Code sections 17053.98(a)(4) and 23698(a)(4) of the qualified expenditures paid or incurred during the taxable year by a qualified motion picture produced in the state at a certified studio construction project. The tax credit may also be increased by Revenue and Taxation Code sections 17053.98(k)(3) and 23698(k)(3), regarding the credit percentage increase for diversity goals achievement.

(e) Notwithstanding subdivision (d), no certified motion picture will be allocated more than the cap sum specified in sections 17053.98(k)(8)(B) and 23698(k)(8)(B) of the Revenue and Taxation Code. Recurring television series that previously received an allocation under this Program for a season shall not be allocated more than the cap sum specified in sections 17053.98(k)(8)(B) and 23698(k)(8)(B) of the Revenue and Taxation Code for subsequent seasons that qualify for this Program.

(f) Motion pictures that have previously received a tax credit allocation under Revenue and Taxation Code sections 17053.98(a)-(j) and 23698(a)-(j), for the fiscal year, are not eligible to receive an allocation under this Program.

(g) If a tax credit allowed by this Program exceeds the taxpayer's computed tax liability, the excess credit may be carried over to reduce the "net tax" or "tax," as applicable, in the following taxable year, and succeeding eight taxable years, if necessary, until the credit has been exhausted.

(h) The relationship between the California Soundstage Filming Tax Credit Program and the California Film and Television Tax Credit Program 3.0 and its successor programs is defined and shall occur as follows: