Significant changes have been made to the California Film and Television Tax Credit Program, which allows qualified taxpayers a tax credit against income and/or sales and use tax liabilities based on expenditures for film and television shows produced in California. Under A1839, not only has a new ranking system replaced the current lottery system as well as an expansion of eligibility to big budget feature films; and a funding increase from $100M to $300M per fiscal year; but also a New Film and TV Tax Credit Program has been established effective January 1, 2016.
Taxpayers that have been issued a Tax Credit Certificate by the CFC, or an affiliate of a qualified taxpayer that has been assigned unused credits, may qualify to use credits to obtain a refund on qualified sales and use tax liabilities. The first application period for the New Film and TV Tax Credit Program was May 2015 for TV only. Productions may not have begun principal photography before receiving a credit allocation, which will be issued on or after July 1, 2015.