California’s Film & TV Tax Credit Program 2.0 Gains Four New TV Series
Latest TV Allocation Also Includes Pilots and Recurring Projects
Hollywood, Calif. – December 11, 2017 – The latest TV allocation for Year-Three of California’s Film & TV Tax Credit Program 2.0 includes an eclectic mix of new series, recurring series and pilots.
A total of $69 million in tax credits has been reserved for 11 projects on-track to spend an estimated $339 million in qualified expenditures (defined as wages paid to below-the-line workers and payments to in-state vendors). They will employ nearly 1,500 cast members and more than 2,200 crew.
The new TV series include Ridley Scott’s "Strange Angel" (CBS Studios), "The Rookie" (Touchstone Television Productions), "Untitled Peacock Project" (Hop Skip & Jump Productions) and Mark Burnett’s "Untitled Old Story Pictures Project" (Old Story Pictures).
"Television drives much of the industry’s long-term employment and economic activity, so we’re gratified to see the tax credit program help keep so much TV production here at home," said California Film Commission Executive Director Amy Lemisch. "Tens of thousands of cast and crew members, as well as support service vendors, are working in California on TV projects thanks to the expanded tax credit program."
Lemisch also referenced data released last week by FilmL.A. affirming the strength of in-state TV production. In its first Sound Stage Production Report, the film office reported that sound stages in its jurisdiction have an average occupancy rate of 96 percent, with nearly 75 percent of utilization attributed to scripted TV series. Such data for sound stages is consistent with the record year-to-year figures for on-location TV production that FilmL.A. credits largely to California’s Film & TV Tax Credit Program 2.0.
Other conditionally approved projects in the current TV allocation round include three pilots ("Euphoria," "Harmony" and "Less Than Zero"), and four recurring series ("Ballers," "S.W.A.T.," "Shooter" and "The Orville") that are already in the tax credit program and have been renewed for another season of in-state production.
The application period for the latest round of TV tax credits was held November 6-13. In addition to the 11 projects in that round, 21 recurring TV series in various stages of production are currently in the tax credit program and eligible for tax credits. In total, 52 TV projects, including pilots, MOWs, miniseries and new/recurring/relocating series, have been accepted into Program 2.0 since it launched in 2015.
A full list of the conditionally approved TV projects announced today is provided in the chart below. Note the list is subject to change, as applicants may withdraw from the program and their reservation of tax credits is reassigned to those currently on the wait list. The next application period for TV projects will be held February 12-16, 2018; a feature film allocation period will follow March 7-13, 2018.
How Projects are Selected and Awarded Tax Credits Under Program 2.0
Projects approved for California tax credits are selected based on their jobs ratio score, which ranks each project by wages to below-the-line workers, qualified spending for vendors, equipment, etc., and other criteria. The top 200% ranked projects in each round (i.e., those that would qualify if double the amount of funding was available for the current allocation round) are evaluated, and those with the highest-ranked jobs ratios receive tax credits. Those not selected are placed on the waiting list. The program allocates funding in "buckets" for different production categories, including non-independent feature films, independent films, TV projects and relocating TV series. This enables applicants to compete for credits directly against comparable projects. As has been the case since the state launched its first-generation tax credit program in 2009, the California Film Commission awards tax credits only after each selected project: 1) completes post-production, 2) verifies that in-state jobs were created, and 3) provides all required documentation, including audited cost reports.
About California’s Film and Television Tax Credit Program 2.0
On September 18, 2014, Governor Brown signed bipartisan legislation to more than triple the size of California’s film and television production incentive, from $100 million to $330 million annually. Aimed at retaining and attracting production jobs and economic activity across the state, the California Film and TV Tax Credit Program 2.0 also extends eligibility to include a range of project types (big-budget feature films, TV pilots and 1-hr TV series for any distribution outlet) that were excluded from the state’s first-generation tax credit program.
Other key changes include replacing the prior lottery system with a "jobs ratio" ranking system that selects projects based on wages paid to below-the-line workers, qualified spending (for vendors, equipment, etc.) and other criteria. Program 2.0 also offers an additional five percent tax credit for non-independent projects that shoot outside the Los Angeles 30- mile zone or have qualified expenditures for visual effects or music scoring/track recording. The five-year Program went into effect on July 1, 2015, and is currently in its third fiscal year (2017/18).
More information about California’s Film and Television Tax Credit Program 2.0, including application procedures, eligibility and guidelines, is at http://www.film.ca.gov/tax-credit/.
About the California Film Commission
The California Film Commission enhances California's status as the leader in motion picture, television and commercial production. It supports productions of all sizes and budgets, and focuses on activities that stimulate and preserve production jobs, spending and tax revenues in California. Services include administration of the state's Film & Television Tax Credit Program, permits for filming at state-owned properties, an extensive digital location library, location assistance and a range of other production-related resources and assistance. More information is available at http://www.film.ca.gov.
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Contact: Erik Deutsch, ExcelPR Group (for the California Film Commission)
(323) 851-2455 direct / (310) 597-9245 cell / email@example.com