Production Alert:

UPDATE

AB 1069 Signed Into Law

Assembly Bill 1069 (Fuentes) was signed into law yesterday by Governor Edmund G. Brown Jr. to extend funding for California's Film & Television Tax Credit Program. The one-year, $100 million extension ensures that tax credits will be available through fiscal year 2014-15.　

The original five-year, $500 million Program was enacted in 2009 as part of an economic stimulus package to increase film and TV production spending, jobs and tax revenues inCalifornia.　 The Program was set to expire in fiscal 2013-14. The new one-year extension provides added continuity and certainty to a program that has proved very successful.

Status for the Current 2011-12 Fiscal Year:

The Film & Television Tax Credit Program is fully subscribed for the current 2011-12 fiscal year. The California Film Commission is maintaining a waiting list for any projects that apply. Applications for the next fiscal year's $100 million allocation of tax credits will be accepted starting June 1, 2012.

About the California Film & Television Tax Credit Program:

Since it was enacted in 2009, the California Film & Television Tax Credit Program has served as an effective tool in the fight against "runaway production," helping keep scores of productions and tens of thousands of jobs in California.

Based on spending estimates by approved film and TV projects, the　 Program is responsible for generating an estimated $2.8 billion in direct spending statewide, including $1 billion in wages to 27,000 "below the line" crew members.　 More information about the California Film & Television Tax Credit Program is available at http://film.ca.gov/Incentives.htm

California Film & Television Tax Credit Program -

Applications for California's Film and TV Tax Credit More than Double Over 2010

Hollywood, Calif. -- June 6, 2011 -- On Wednesday, June 1st, the California Film Commission began accepting applications for the next $100 million round of tax credits provided annually by the state's Film & Television Tax Credit Program, which was enacted in 2009 to help curb runaway production.

The number of applications submitted this year on the first day of the application period more than doubled to 176, compared to 70 last year. At the same time, the number of projects selected to receive credits before the entire $100 million was allocated dropped to 27, from 32 last year*.

Applications were accepted on June 1 from 9:00 am - 3:00 pm. At 3:30 pm, Film Commission staff members, with assistance from a California Highway Patrol officer, conducted a lottery to select projects at random. Each application was given a number between 1 and 176, and the credits were then doled out in that order until all $100 million was assigned.

"The number of applications we received this year far exceeded our expectations," said California Film Commission Executive Director Amy Lemisch. "It's clear the industry wants to stay and California and understands the value of the state's tax credit incentive." The breakdown of projects selected (based on type of production) is as follows:

Feature (Studio) -- 4 projects (14.8%)
Feature (Indie) -- 10 projects (37%)
TV Series -- 10 projects (37%)
MOW (Studio) -- 0
MOW (Indie) -- 1 (3.7%)
Relocating TV -- 2 (7.40%)

Based on information provided by each applicant, it is estimated that these projects will spend more than $662 million in California, including nearly $234 million in qualified wages. They will employ an estimated 3,048 cast members, 3,307 crew members and 49,778 extras/stand-ins (calculated in "man-days").

The California Film Commission will continue to accept applications throughout the fiscal year for placement on the waiting list. Those on the list will be accepted only after credits are freed up by other projects that withdraw from the program due to scheduling delays, casting problems or other production-related issues.

"Many projects currently on the waiting list will receive credits," Lemisch added. "While demand exceeds supply, our goal is to administer the program in the most fair and efficient way possible."

Prior to the current fiscal year (which began June 1), projects approved since the program went into effect in 2009 have been responsible for $2.2 billion in direct spending within the state, including $736 million in wages paid to "below-the-line" crew members. About the California Film & Television Tax Credit Program

The California Film & Tax Credit Program was enacted in February 2009 as part of a targeted economic stimulus package to increase production spending, jobs and tax revenues in California. Administered by the California Film Commission, the five-year, $500 million program is targeted specifically at the types of productions most likely to leave California due to incentives offered by other states and countries. More information about the program is available at http://film.ca.gov/Incentives.htm.

* Tax credits are awarded to each project based on the project's budget. Once the sum of tax credits allocated reaches $100 million, any additional projects are placed on a waiting list.