§ 5531. Eligibility Determination.
10 CA ADC § 5531Barclays Official California Code of RegulationsEffective: February 8, 2024
Effective: February 8, 2024
10 CCR § 5531
§ 5531. Eligibility Determination.
(1) Phase A requires the applicant to complete and submit the online application set forth on the CFC website regarding certification of a studio construction project and to submit the Certified Studio Construction Project Verification report required pursuant to section 5532. A Phase B application shall not be submitted until the Phase A studio construction project has been certified and a Soundstage Certification Letter (SCL), Form SCL (August 12, 2022), hereby incorporated by reference, has been issued for each soundstage and ancillary building, or group of buildings, approved as part of the certified studio construction project.
(2) Phase B requires the applicant to complete and submit the online application set forth on the CFC website regarding the proposed motion picture production, as described in section 5533, and to submit the diversity workplan described in section 5534 for the motion picture production. An applicant shall not begin principal photography until it receives approval from the CFC for its Phase B-submission and receives a Credit Allocation Letter (CAL), Form SD (August 12, 2022), hereby incorporated by reference.
(A) A motion picture may still be eligible for a tax credit under the California Film and Television Tax Credit Program 3.0 or its successor programs once all California Soundstage Filming Tax Credit Program funds have been allocated or if the motion picture is no longer eligible for the Soundstage Filming Tax Credit Program, if the motion picture meets the criteria specified in section 5539(h).
(c) The soundstage or soundstages certified by the CFC as a certified studio construction project must meet the requirements of sections 17053.98(k)(2)(A), (k)(12)-(13) and 23698(k)(2)(A), (k)(12)-(13) of the Revenue and Taxation Code, as implemented in sections 5532 and 5538 of the California Code of Regulations, Title 10.
(1) Qualified wages for purposes of satisfying the criteria in sections 17053.98(k)(2)(B)(ii) and 23698(k)(2)(B)(ii) include wages for production services performed within the production period, as defined in sections 17053.98(b)(14) and 23698(b)(14) of the Revenue and Taxation Code, on soundstages and ancillary buildings certified as part of a certified studio construction project, as defined under section 5530, subdivisions (c) and (d).
(j) To qualify as a pilot for a new television series, the pilot episode shall have a running time longer than forty (40) minutes, exclusive of commercials, shall be produced in California with a minimum budget of one million dollars ($1,000,000), and shall be the initial episode in a proposed television series.
(k) An animated production is not considered a qualified motion picture and shall not be eligible for a tax credit. Animated production means content created that does not utilize or incorporate live action footage but creates a motion picture consisting principally of computer generated or hand painted images. An animated production does not engage in principal photography and therefore does not meet the conditions for eligibility set forth in sections 17053.98(k)(2)(B) and 23698(k)(2)(B) of the Revenue and Taxation Code.
(l) A feature film or a season of a series may 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. Recurring television series that previously received an allocation under this Program for a season shall not be allocated more than that cap sum for subsequent seasons that qualify for this Program.
(m) Tax credits under this Program for an independent film, as defined in sections 17053.98(b)(6) and 23698(b)(6) of the Revenue and Taxation Code, shall be applied to a maximum of ten million dollars ($10,000,000.00) of the qualified expenditure budget. There shall be no maximum on the production budget.
(n) Any television series, relocated television series and any television series based on a pilot that has been approved and issued a Credit Allocation Letter under the California Soundstage Filming Tax Credit Program, shall be given first priority for a credit allocation as a recurring television series in each subsequent year in the life of that series for as long as credits are available. When credits are no longer available for the California Soundstage Filming Tax Credit Program, a recurring television series initially allocated tax credits from this Program and seeking an allocation of credits for a subsequent season shall receive an allocation of credits from the California Film and Television Tax Credit Program 3.0 or its successor programs, pursuant to sections 17053.98(k)(8)(E), 17053.98(k)(8)(G)(ii), 23698(k)(8)(E) and 23698(k)(8)(G)(ii) of the Revenue and Taxation Code.
(1) Each recurring television series shall submit a new application and pick-up order, if available, for each season. The application shall reflect the estimated qualified expenditures, but the allocation will not exceed the amount approved in the previous season's credit allocation letter(s). The narrative statement requirement as set forth in sections 17053.98(g)(2)(A)(viii) and 23698(g)(2)(A)(viii) of the Revenue and Taxation Code for all projects shall be deemed as met for recurring television series with the statement submitted by that series when it was accepted into this Program as a pilot, new or relocating television series.
Credits
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)(B), 17053.98(k)(3), 17053.98(k)(4), 17053.98(k)(8), 17053.98(k)(9), 17053.98(k)(12)-(13), 17053.98(a), 17053.98(b), 17053.98(g), 23698(k)(2)(B), 23698(k)(3), 23698(k)(4), 23698(k)(8), 23698(k)(9), 23698(k)(12)-(13), 23698(a), 23698(b) and 23698(g), Revenue and Taxation Code; and Section 14998.1, Government Code.
History
1. New section filed 4-11-2022 as an emergency; operative 4-11-2022 (Register 2022, No. 15). A Certificate of Compliance must be transmitted to OAL by 10-10-2022 or emergency language will be repealed by operation of law on the following day.
2. New section refiled with amendments to section and Note 10-3-2022 as an emergency; operative 10-11-2022 (Register 2022, No. 40). A Certificate of Compliance must be transmitted to OAL by 1-9-2023 or emergency language will be repealed by operation of law on the following day.
3. Refiling of 10-3-2022 emergency on 1-9-2023; operative 1-10-2023 (Register 2023, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-10-2023 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 10-3-2022 order, including amendment of Note, transmitted to OAL 1-3-2023 and filed 2-15-2023; amendments effective 2-15-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 7).
5. Amendment of section and Note filed 8-18-2023 as an emergency; operative 8-18-2023 (Register 2023, No. 33). A Certificate of Compliance must be transmitted to OAL by 2-14-2024 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 8-18-2023 order, including amendment of subsection (n)(1), transmitted to OAL 12-26-2024 and filed 2-8-2024; amendments effective 2-8-2024 pursuant to Government Code section 11343.4(b)(3) (Register 2024, No. 6).
This database is current through 7/12/24 Register 2024, No. 28.
Cal. Admin. Code tit. 10, § 5531, 10 CA ADC § 5531
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