Written by David Lewis on Mar 23, 2009. Posted in Incentive News

California launches new filming tax incentives

The new legislation provides a tax credit of 20% (25% for independent features under USD10 million), with an appropriation of USD100 million per year for five years starting on July the 1st 2009.

75% of the film must be shot in California. A TV series will qualify for a 25% credit, as opposed to 20%, if they relocate from another state. All TV series for basic cable will qualify. This is a below-the-line tax credit, and the credits may not be used until 2011.

California also offers a number of other incentives.

Through the State Theatrical Arts Resources (STAR) programme, distinctive, unused state properties such as health facilities, historic homes, prisons and vacant office structures are available at no charge or at a nominal fee to filmmakers (fees are charged for all monitors assigned to a production) .

There is no state hotel tax on occupancy and most cities or counties that impose a local hotel tax have a tax exemption for occupancies in excess of 30 days.

There is also a 5% sales tax exemption on the purchase or lease of post-production equipment for qualified persons (the exemption is taken by the seller of the equipment and passed on to the buyer at the point of purchase) .

The Scene in San Francisco incentive is a refund of all city costs and a portion of hotel, sales tax & all San Fransisco payroll taxes with a per production cap of the total contribution of taxes paid to the city.

The City of Los Angeles waives location use fees at many frequently filmed city facilities including City Hall, city-owned office buildings and property and all public library facilities.