California Film Credit for certified studio construction projects - Spidell

California Film Credit for certified studio construction projects


SB 144 (Ch. 21-114), in addition to making other changes to the California Film and Television Credit Program 3.0, establishes a new certified studio construction project tax credit. The new credit is for 20% or 25% of qualified expenditures for the production of a qualified motion picture in California at a certified studio construction project.

A “certified studio construction project” is defined as a project that provides for the construction or renovation of one or more soundstages located in California. One of the specifications is that there be actual or renovation expenditures of at least at $25 million made over not more than five continuous calendar years. A taxpayer seeking certification of a studio construction project also must make various certifications to the CFC, including that the project is a public work or pays the equivalent of prevailing wages, as provided, and uses a skilled and trained workforce.

SB 144 allocates a total of $150 million to this new credit and limits allocation of the credit for a season of a television series or feature film to $12 million. The credit is allowed for taxable years beginning on or after January 1, 2022, and before January 1, 2032.

Among other things, SB 144 also provides an additional $75 million in credits each year for fiscal years 2021–22 and 2022–23 for recurring television series, and provides an additional $15 million in credits each year for fiscal years 2021–22 and 2022–23 for relocating television series.