(1) One to seven bonus points based on the visual effects expenditures per project category, e.g., independent film, non-independent feature, television project. Excludes independent films with qualified expenditure budgets of ten million dollars ($10,000,000) or less.

(2) One to ten bonus points based on the percentage of principal photography days outside the Los Angeles Zone in relation to the qualified motion picture's total principal photography days in the state. To qualify for bonus points, a principal photography day outside the Los Angeles Zone must include at minimum filming the first scene of the day outside the Los Angeles Zone.

(3) One to five bonus points based on the wages paid to scoring musicians, including the following positions: Instrumental musicians, vocalists, music arrangers, orchestrators, Musical Instrument Digital Interface(MIDI) transcribers, music copyists, music librarians, conductors (unless also the composer), and musician and choral contractors employed solely for the purpose of recording music for the qualified motion picture. Excludes independent films with qualified expenditure budgets of ten million dollars ($10,000,000) or less.

(1) Percentage points for principal photography days out of the Los Angeles zone as provided in subsection (b)(2) shall be determined by applying percentage points on a linear proportionate scale. Starting with 10% of principal photography days, the applicants will receive one point for every 10 percent increase of out of zone principal photography days (10% or more but less than 20% of the above days = 1 point, 20% or more but less than 30% of the above days = 2 points, etc.) until the maximum cap of points is received. The percentages are determined by dividing the out of zone principal photography days by the total principal photography days.

(2) Bonus points for VFX as provided in subsection (b)(1) shall be determined utilizing the following method: The CFC shall use the National Institute of Standards and Technology formula to create cut-off values that sort an equal number of projects into each point range as further described below.

Following the National Institute of Standards and Technology (NIST) “Engineering Statistics Handbook: Percentile” formula, the applicant pool is first ranked from lowest to highest value in each of the three categories, where 1 corresponds to the lowest rank. The formula then finds the rank n associated with each percentile cut-off as follows:

n = P/100 x (N + 1)

P is the percentile of interest. If there are ten possible point ranges for example, then P = 10 would correspond to the 10th percentile, P = 20th to the 20th percentile, and so forth, until the 100th percentile has been calculated. N is the total number of applicants in the current applicant pool.

The formula then uses a standard rounding and conversion procedure to turn the rank n into a monetary cut-off value. The Excel function PERCENTILE automatically does this calculation according to the same NIST formula (see citation: http://www.itl.nist.gov/div898/handbook/prc/section2/prc262.htm) The CFC shall use this Excel function to determine initial cut-offs, and then choose final cut-offs within +/- 10 percent of what the formula produces, such that the ranges can be rounded. Ranges may be adjusted for future application periods based on the data collected from previous application periods.

(3) Bonus points for music wages as provided in section (b)(3) shall be determined by utilizing music wage data from submitted budgets in prior tax credit programs and from music contractors. After determining the highest to lowest qualified wage figures per type of production, ranges with percentage points by production type were calculated.