Section 5510 - Eligibility Determination(a) If applicant is planning to produce a "qualified motion picture," then applicant shall ensure that the "qualified motion picture" complies with the provisions of sections 17053.95(b)(18) and 23695(b)(18) of the Revenue and Taxation Code and applicant must plan to film at least seventy-five percent (75%) of principal photography days wholly in California or seventy-five percent (75%) of the production budget shall be incurred in California.(b) To qualify as a new television series, the television series, shall produce episodes with a running time longer than forty (40) minutes, exclusive of commercials, and with a minimum production budget of one million dollars ($1,000,000.00) per episode.(c) To qualify as a television series that relocated to California, the television series shall meet the following criteria:(1) Provide a certification from the applicant that the tax credit provided pursuant to this section is the primary reason for relocating to California.(2) Produce episodes of any length, filmed its most recent season outside of California, and have a minimum production budget of one million dollars ($1,000,000.00) per episode.(d) A new television series from a television pilot shall produce episodes with a running time longer than forty (40) minutes, exclusive of commercials, and with a minimum production budget of one million dollars ($1,000,000.00) per episode.(e) 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.(f) 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 17053.95(b)(13) and 23695(b)(13) of the Revenue and Taxation Code.(g) Tax credits for a "feature film" shall be applied to a maximum of one hundred million dollars ($100,000,000.00) of the qualified expenditure budget. There shall be no maximum on the production budget.(h) Tax credits for an independent film 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.(i) Revocation of the tax credit allocation is final and shall not be subject to administrative appeal or review.Cal. Code Regs. Tit. 10, § 5510
1. New section filed 4-13-2015 as an emergency; operative 4-13-2015 (Register 2015, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-12-2015 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-15-2015 as an emergency; operative 10-15-2015 (Register 2015, No. 42). A Certificate of Compliance must be transmitted to OAL by 1-13-2016 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-7-2016 as an emergency; operative 1-7-2016 (Register 2016, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-6-2016 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-7-2016 order, including amendment of subsection (c)(2), repealer of subsection (i) and subsection relettering, transmitted to OAL 3-29-2016 and filed 5-11-2016; amendments operative 5-11-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 20). Note: Authority cited: Sections 17053.95(e) and 23695(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95 and 23695, Revenue and Taxation Code; and Section 14998.1, Government Code.
1. New section filed 4-13-2015 as an emergency; operative 4/13/2015 (Register 2015, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-12-2015 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-15-2015 as an emergency; operative 10-15-2015 (Register 2015, No. 42). A Certificate of Compliance must be transmitted to OAL by 1-13-2016 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-7-2016 as an emergency; operative 1-7-2016 (Register 2016, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-6-2016 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-7-2016 order, including amendment of subsection (c)(2), repealer of subsection (i) and subsection relettering, transmitted to OAL 3-29-2016 and filed 5-11-2016; amendments operative 5/11/2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 20).