The 92900 a California Film & TV Tax Credit Program

The California Film & Television Tax Credit Program provides financial incentives for productions filmed within the state. As of July 1, 2025, the program, known as Program 4.0, is authorized through June 30, 2030. Overseen by the California Film Commission, it offers refundable tax credits on qualified spending to stimulate local economies and keep projects in California. A production can receive a payment if the credit amount exceeds its state tax liability.

Production Eligibility Requirements

To be considered for the program, a project must first be a “qualified motion picture.” This category includes feature films with a minimum budget of $1 million and new television series or miniseries with an episodic budget of at least $1 million. Independent films are also eligible. The program is structured to support a range of scripted productions intended for various distribution platforms.

A significant portion of the production activity must occur within California to qualify. The primary requirement is that at least 75% of the total principal photography days take place in the state. Alternatively, a production can qualify if at least 75% of its total production budget is spent on goods, services, and wages within California.

Certain types of productions are explicitly excluded from eligibility. The program does not provide credits for the production of commercials, music videos, or talk shows. Also ineligible are reality television programs, game shows, and documentaries.

Calculating the Tax Credit Amount

The base tax credit is either 20% or 25% of a production’s qualified expenditures. Most eligible projects, including new TV series and non-independent feature films, receive a 20% credit. The higher 25% rate is reserved for independent films and television series that are relocating to California after having filmed their prior seasons elsewhere. For non-independent productions, the credit calculation is capped at the first $100 million of qualified expenditures.

Qualified expenditures are the core of the credit calculation and primarily consist of below-the-line costs. These include wages paid to California residents for services performed in the state and payments for tangible property purchased or leased for use within California. Above-the-line costs, such as payments to writers, directors, and lead actors, are generally excluded.

Productions can increase their credit amount through several “uplifts,” which are percentage-based add-ons. A 5% uplift is available for filming that occurs outside of the Los Angeles 30-Mile Zone, encouraging production in other parts of the state. An additional credit can be earned for qualified spending on visual effects (VFX) or music scoring performed in California. For example, a non-independent film with $50 million in qualified expenditures would receive a base credit of $10 million (20%), but if $10 million of those costs were for filming outside the L.A. Zone, it would gain an additional $500,000 (5% of $10 million) in credit.

Required Information for the Application

Before applying, production companies must gather a comprehensive set of documents. A complete copy of the script is necessary to verify the nature of the project. Applicants must also prepare a detailed production budget and a day-by-day shooting schedule, which substantiate the project’s financial plan and filming timeline. All application materials are submitted through an online portal on the California Film Commission’s website.

Proof of secure financing is another requirement for the application package. Applicants must also submit a Diversity, Equity, Inclusion, and Accessibility (DEIA) Workplan outlining goals for hiring individuals from underrepresented groups. Failure to submit the plan or make a good-faith effort to meet its goals can result in a 4% reduction of the total tax credit. Additionally, productions must participate in a Safety on Productions Pilot Program, which includes having a qualified safety advisor on set.

The Credit Allocation Process

The allocation of tax credits is a competitive process managed through specific application windows announced each fiscal year. To determine which projects receive a credit allocation, applications are ranked based on a “jobs ratio.” This ratio prioritizes productions that create a high number of jobs for California residents relative to the credit amount requested. If the program is oversubscribed, applicants are placed on a waiting list according to their jobs ratio ranking.

Projects that are successfully ranked are issued a Credit Allocation Letter (CAL) by the California Film Commission. This letter is not the final tax credit but serves as a formal reservation of tax credits for the production. The CAL specifies the estimated credit amount the project is eligible to receive upon completion and verification of its qualified expenditures.

Upon receiving the CAL, a production must meet a deadline. The project is required to begin principal photography in California within 180 days of the letter’s issuance date. Failure to meet this 180-day start date will result in the forfeiture of the reserved tax credits, which are then returned to the program for reallocation.