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CALIFORNIA

Sept 17, 2009

California Film & Television Tax Credit Program

From Variety: CA incentives hope to slow exodus

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August 22, 2005

California Film Commission Releases Comprehensive Study on Tax Benefits/Revenues Generated by Film & Television Production;
Study Reveals Significant Economic Benefits Entertainment Industry Has on California Economy...........READ MORE

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California Film Commission
The State Theatrical Arts Resources (STAR) partnership puts surplus State-owned assets to work for motion picture production in California. Authorized and signed into law under Senate Bill 2061 on Sept. 25, 2000, the STAR partnership makes State properties such as health facilities and vacant office structures available to filmmakers at no charge or at a nominal fee.

State Film Permits - A multitude of State properties are made available through a one-stop film permit center located at the California Film Commission. Whether you're looking for unusual rock formations, climbable rocks, open highways, or an empty office building, contact the CFC for your free state film permit.

California Permit Offices (alphabetical order)
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Film LA - The Non Profit Public Benefit Corporation Set up to Facilitate the Process of obtaining public permits to conduct professional filmmaking in the city and County of Los Angeles.
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Regulation 1532 - Print page 7 of this PDF, fill it out, present it to California Retailers to receive the partial sales tax exemption of 6.25% reduced from the 9.75% Los Angeles CA sales tax on the purchase or lease of postproduction equipment by qualified persons. (Includes computers, cameras, lenses, peripherals, and more. Check the language in the Regulation for details. ) Perhaps the most under-utilized incentive in place in California presently.
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Regulation 1529 (HTML) - (PDF) - "No Sales or use tax on production or postproduction services on a motion picture or TV film.
a) GENERAL. (1) A person who produces a motion picture or performs Òqualified production servicesÓ is the consumer of, and tax
applies to the sale to such persons of raw film, sound tape, or videotape stock; paintings; models; artwork; and other
tangible personal property for such use.
(2) Tax does not apply to amounts charged for the right to exploit a qualified motion picture.
(3) Tax does not apply to charges for Òqualified production servicesÓ performed by any person in any capacity
(employee, agent, independent contractor or otherwise) in connection with the production of all or any part of a Òqualified
motion pictureÓ.
(4) Tax does not apply to charges for services performed by persons who do not fabricate or process tangible
personal property, such as directors and lighting technicians. (See Regulation 1501 for a more detailed discussion.)..................READ MORE
No Sales and use tax on services generally. Such induustry specific services include writing, acting, directing, casting and storyboarding.
No Sales and use tax on 45% of the charges for sets, including labor to design, construct and strike and no sales tax on the full charge for the rental of personal property"

( - There is presently no Manufactuerrs Investment Tax Credit applicable in the State of California (The old one was repealed in 2003 and didn't apply to Filmmaking anyway).
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State Business Tax Information & forms can be obtained at:
The Franchise Tax Board
300 S. Spring St. #5704
Los Angeles, CA 90013-1204
(800) 852-5711
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State Tax Regulations - Questions of a Legal Nature can be answered by calling:
Pat Kusiak - Regulation Attorney,
Franchise Tax Board - Legal Branch - Links to "Legal Rulings" Page of the FTB
PO Box 1720
Rancho Cordova, CA 95741-1720
916.845.3309 Fax:916.845.3648
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Official Legislative Information - State of California

Assembly Bill - (Introduced, Amended, History, Status) - AB 1830, as amended, Cohn.
Tax: credits: qualified motion picture . The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for taxable years beginning on or after July 1, 2006, and before January 1, 2012, in an amount equal to 15% of the qualified amount for qualified wages paid or incurred for services performed, on or after January 1, 2006, and before January 1, 2009, with respect to the production of each qualified motion picture.

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MovieMaker 2004 "Top 10 Cities for Moviemakers" - Our fourth annual ranking of the best places in the US to live and make movies (Movie Maker Mag Website)
by James L. Menzies

ABC's new crime drama "The Evidence," premiering in the spring, is set in San Francisco. After two weeks of shooting exteriors in The City, the production packed up and moved to Vancouver, Canada, for the interior shots, said Cathryn Blum, owner of Catbird Scouts.

"They spent a million dollars in Vancouver," Blum said. "It would have been nice to have that money spent here."

The lack of a sufficient soundstage as well as the cost and complication of shooting here have contributed to San Francisco losing 70 percent of its film and television production business over the last decade............................READ MORE
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09/16/04 (SF Chronicle) - SAN FRANCISCO/ City Film Board Gets Beefed Up, Office Gets New Head
Promising to revitalize San Francisco's film industry, Mayor Gavin Newsom named several entertainment heavyweights Wednesday to the city film commission -- including Lucas Digital President Jim Morris -- and nominated location manager Stefanie Pleet Coyote to head the film office............READ MORE
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09/17/2004 - Governor Schwarzenegger Issues Executive Order on Interagency Cooperation
with the California Film Commission
In an ongoing effort to increase the efficiency of the California Film Commission and promote filming in the State, Governor Arnold Schwarzenegger has issued Executive Order S-15-04 which mandates cooperative relationships between government agencies and departments and the California Film Commission..............READ MORE
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From LA Daily News 9/12/05:
LAUSD schools are film-friendly
By Naush Boghossian, Daily News Staff Writer
NORTH HOLLYWOOD -- The producer of the television comedy "My Name is Earl" needed to film a high-school football game for a flashback sequence on the NBC show that premieres this month.
Not only did he get the perfect backdrop at Grant High in North Hollywood, he decided to use the school's football team for the game -- and in exchange gave a "large" donation to the football program.

That's exactly the kind of partnership the Los Angeles Unified School District would like to foster with Hollywood. By becoming more accommodating to television, movie and commercial film crews, the district hopes to raise additional money at a time of tighter budgets..................READ MORE

FROM PRODUCTION UPDATE MAGAZINE
MARCH 2005

LOS ANGELES
Where The Magic Lives
by Brooke Comer
The film industry, like all industries, experiences its shares of ups and downs, and when the economy lags, film commissions around the country may fold up or downsize. Some cities go for years without hosting a big feature; some have never seen the bright lights of a 10K. Hollywood, however, is unique. It is the home of the big studios and infinite locations, and it will never lose its cache. Visitors flock to Hollywood Boulevard to look at the gilded stars on the Walk of Fame and check out Graumann’s Chinese Theatre, which boasts cement handprints of Hollywood legends from Shirley Temple to Marilyn Monroe. Los Angeles is where the magic lives and right now that magic is doing its job, increasing the number of projects, the size of budgets and overall, ensuring that 2005 will be a healthy year for the film business.

According to Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., “The Los Angeles film industry had a good year in 2004, with television showing the best and steadiest growth. There appears to be a trend back to scripted TV shows.” Kyser believes that, in general, filming in Los Angeles has increased with TV production setting the pace. “Reality TV has been the leader in TV production,” Kyser said. “However, the surprise showing of ABC’s Lost and Desperate Housewives has given the industry the promise of more scripted and creative TV, which will benefit the industry in general. There is a demand for content and both Lost and Housewives bring new life to scripted series possibilities.”

Kyser also applauds the work of the Entertainment Industry Development Corporation (EIDC). Steven McDonald, president of the EIDC is very responsive to the needs of the film industry, according to Kyser. “One major advantage is the notification now given in a timely fashion to residents of the area where the filming will take place,” Kyser stated. “When people can plan in advance for any inconvenience of filming in their area, it causes fewer problems and makes residents less resistant to subsequent filming. They feel the industry is working with them.’.................................READ MORE