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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
July was a landmark month for the California Film and Television Tax Credit Program, as lawmakers in the state greenlit highly anticipated enhancements to the program just days after announcing a slate of new tax credit awardees.
The awards will go to 52 productions—48 feature films and 4 new television projects— including a record-breaking number of independent films. The group is the final batch of recipients under the California Film & Television Tax Credit Program 3.0, which officially sunset on June 30.
On July 1, 2025, California’s new and improved Film & Television Tax Credit Program 4.0 took effect, backed by sweeping legislative support and an ambitious expansion in funding and eligibility.
In this article, we’ll break down the biggest updates included in California’s newly launched Program 4.0, take a closer look at the recent credit awardees, and explore how both are shaping the state’s future in film and television production.
Before we explore the latest group of tax credit recipients and what they can tell us about the direction of California’s film tax credit program, let’s take a moment to unpack what changed when California’s Film & Television Tax Credit Program 4.0 officially launched on July 1, 2025.
With several enhancements enacted by Senate Bill 132 and Assembly Bill 1138, Program 4.0 introduces a significant overhaul aimed at keeping California competitive with other leading film incentive states like New York, Georgia, and Louisiana.
Here’s what’s new under the hood.
Program 4.0 more than doubles the state’s annual film tax credit allocation—from $330 million to $750 million. With that increase, California’s incentive remains one of the most funded in the country, on par with New York’s recently expanded $800 million annual funding cap and competitive with Georgia’s uncapped production incentive.
The California film tax credit program’s increased funding is strategically distributed across production categories, with:
Dramatically boosting available funding for all productions, this massive injection of state money reflects California’s commitment to attracting—and keeping—projects of all sizes and formats in the state.
Keen observers will notice animated films are included in the list above. That’s right. For the first time, animated feature films are eligible for California’s tax credit program, as are animated and live-action series and pilots with episodes averaging at least 20 minutes in length.
The change for television productions significantly broadens eligibility to a whole host of series that previously did not meet Program 3.0’s minimum episode length of at least 40 minutes.
Large-scale competition shows with budgets of $1 million or more can also now qualify for incentives. However, most other unscripted formats—including reality shows, talk shows, and docuseries—remain excluded.
Across the board, the updates to the California film tax credit program raise the base credit percentage available to productions. Under Program 3.0, most projects were eligible for 20% to 25% in base credits. Under Program 4.0, most qualifying productions can now claim a base credit of 35%.
TV series that relocate to California in their first year of receiving a CA film tax credit are now eligible for a base credit of 40%.
To complement the increased base credits, Program 4.0 introduces a streamlined package of bonuses that can push total credits as high as 45%.
The new bonuses include:
A 5% bump on qualified expenditures relating to original photography outside the Los Angeles zone (this bonus is limited qualified spend on tangible goods and does not include out-of-zone payroll expenses, which can qualify for the Local Hire Labor bonus).
A 5% bump on qualified expenditures relating to qualified visual effects attributable to the production of a qualified motion picture in California. Productions still must incur at least 75% of qualified VFX expenditures in California or spend at least $10 million on qualified VFX expenditures in California to take advantage of this bonus.
A 5% or 10% bump (depending on production type) on qualified wages paid for services performed relating to original photography outside of the Los Angeles zone to qualified individuals who reside in California but outside the Los Angeles zone. Productions eligible for the 35% base credit, including independent and non-independent feature films and most television projects, can receive a 10% bonus. TV series relocating to CA in their first year of receiving a credit that are eligible for the base of 40%, can receive a 5% bonus for eligible out-of-zone wage expenditures.
Up to a 2% bump for productions that employ Career Pathways Training Program trainees (awarded at the discretion of the California Film Commission).
While many of these bonuses existed in Program 3.0 in one form or another, they have been streamlined to allow more productions to qualify for larger credits and to simplify the qualification criteria.
One of the core mechanics of California’s film tax credit program has always been its project cap—limiting how much in-state spending could qualify for the incentive. Under Program 3.0, most productions could claim credits on up to $100 million in qualified expenditures, regardless of their total budget.
For example, a non-independent feature film with a budget of $150 million could only receive a credit back on up to $100 million in eligible California production expenses. If the feature qualified for the previous base credit of 20%, that would mean $20 million in tax credits.
Program 4.0 expands per project caps across the board.
The maximum amount of qualified expenditures has been raised to $120 million for all production categories except independent films. Indies—whose cap previously stood at $10 million—can now qualify for credits on up to $20 million in eligible spending, doubling their potential award.
The increase is a meaningful shift that clears more financial headroom for bigger-budget films while also making California’s incentive more impactful for independent storytellers.
In addition to effectively doubling the project cap for indies, Program 4.0 increases support for independent projects in a few other key ways.
Under Program 4.0, 10% of the state’s new $750 million annual allocation—$75 million total—is now reserved exclusively for independent films. That funding is split evenly: 5% for projects with budgets under $10 million, and 5% for those over.
Indies also now qualify for a larger bonus on qualified out-of-zone payroll. Under Program 3.0, the Local Hire Labor bonus for independents was capped at 5%. Program 4.0 raises that figure to 10%, bringing it in line with studio-backed features and leveling the playing field for productions shooting beyond the L.A. zone.
Additionally, the definition of what qualifies as “independent” has been broadened. Previously, a production company could not be more than 25% owned by a publicly traded entity to qualify. That threshold has now increased to 30%, allowing more projects to access the indie-specific benefits of the program.
One of the most transformative changes in Program 4.0 is the introduction of refundable tax credits—an option that could significantly benefit both indie filmmakers and non-independents alike.
Outside of those issued to independent feature films, California film tax credits have always been non-transferable and non-refundable. This means that the credits can only be used to offset a production company's in-state California income tax liability.
With the introduction of a refundable credit option (which was first detailed in 2023 under Senate Bill 132 and scheduled to begin after July 1, 2025), productions allocated credits under Program 4.0 may now elect to receive a portion of their credit as a refund over time.
The refundability election must be made in the same taxable year the credit certificate is issued, and is not available retroactively to credits issued under Programs 1.0 through 3.0.
Once the election is made, the refundable portion of the credit—up to 90% of the amount exceeding the applicant’s California tax liability—will be paid out over five years, including the year of election.
This long-anticipated change gives production companies with limited California tax liabilities an opportunity to more fully realize the value of their credits.
As before, independent feature films may also opt to transfer credits.
California’s Soundstage Filming Tax Credit Program also gets a substantial lift.
Under Program 4.0, eligible projects filming at certified soundstage construction sites can now receive credits at the same elevated levels as other qualifying productions—35% to 40%, depending on project type.
The changes also remove a major barrier for access. Previously, to qualify under the soundstage bonus, a production company had to either own more than 50% of the soundstage or enter into a lease of at least 10 years. Program 4.0 eliminates that requirement, opening the door for a broader range of producers and facility partners.
Beyond the headline-grabbing incentives, Program 4.0 deepens the state’s investment in the film industry’s future.
The Career Pathways Training Program, first established under Program 3.0, will receive increased funding to support its mission of building a more diverse and inclusive production workforce.
Productions that participate in the Career Pathways Program are eligible for a bonus of up to 2%, but the long-term goal is structural: to create real career pipelines for talent from underrepresented communities.
Program 4.0 also adds new ZIP code and veteran status reporting requirements for the Career Pathways and Diversity Workplan programs, furthering the CFC’s commitment to growing an inclusive and representative crew base in the state.
Language from the California Film Commission’s film tax credit regulations suggests that productions that don’t opt into or meet diversity workplan goals can see a reduction of up to 4% on their total California film tax credit. Independent feature films with budgets under $10 million do not have to opt into diversity goals.
Perhaps most notably, the launch of Program 4.0 coincides with the introduction of the Safety in Motion Picture Productions Pilot Program—a first-of-its-kind initiative in the U.S. The new program aims to elevate health and safety practices on set through voluntary partnerships and data-sharing between participating productions, labor unions, and the state.
Together, these enhancements reflect a holistic approach to supporting film and television production beyond financial incentives.
The launch of Program 4.0 followed days after California announced its final round of credit awards from the outgoing Program 3.0. If the final slate of 3.0 recipients offers any indication, the California Film Commission is keenly focused on strengthening support for indie filmmakers with Program 4.0.
On June 23, 2025, the California Film Commission announced $96 million in new tax credits awards going to 48 feature films. Forty-three of the 48 projects qualify as independents—many operating with budgets of $10 million or less. It’s the largest cohort of indie projects to ever receive funding in a single allocation.
Among the highest-profile films to land credits were an untitled Netflix production, a Lionsgate feature titled The Seed, a biopic of notorious Hollywood figure Heidi Fleiss, the Ang Lee–directed Old Gold Mountain, and a sequel to One of Them Days produced by Issa Rae.
Though indies were by far the biggest winner, taken together, the 48 projects span a wide range of genres and include both small and big-budget productions, a few with large studio backing.
The momentum continued when, days later, the CFC revealed four new television projects receiving tax credit allocations. Combined, the four TV series are expected to bring over $240 million in qualified expenditures to California and will receive more than $48 million in credits in return.
The four shows join 12 other TV projects awarded credits during 3.0’s final three application periods—bringing the total to 16 television productions in this closing phase of the program. Of the 16, nine are returning series, two are new pilots, and one is a relocating series now bringing its production to California.
Altogether, the 16 television projects are projected to employ 6,664 cast and crew members and hire roughly 59,000 background performers (measured in days worked), across 1,308 total filming days in the Golden State.
Meanwhile, the 48 feature films are expected to bring in $664 million in total spending statewide—including $485 million in qualified expenditures and over $302 million in wages paid to California workers.
The awards offer a strong signal that, leading into the dramatically enhanced and expanded Program 4.0, California is doubling down on its mission to attract new production to the state and retain it with industry-leading support.
More specifically, the final credit allocations of Program 3.0 provide a preview that under Program 4.0, the California Film Commission sees independent film taking a more central role in the state’s production ecosystem. Indies, after all, are a proven job engine.
Take The Heidi Fleiss Story from Pinky Promise Films, for example. With $9 million in qualified spend over 28 days of filming—primarily in Riverside County—the production is expected to hire a cast of 41 and a crew of 90. That’s a sizable employment impact for a relatively modest budget, exactly the kind of production California is prioritizing under its updated guidelines.
At the same time, Program 4.0 should continue to court prestige and scale. Old Gold Mountain, an Ang Lee-directed feature, is expected to spend $27.4 million across 40 days of filming in the state, employing 58 cast members and a crew of 170. These mid- to high-budget indies can have enormous economic ripple effects, and California’s increased caps and expanded eligibility aim to make room for more.
The state is also sharpening its focus on bringing runaway productions back. One of the 16 recently awarded television projects is a relocating series—part of a broader push to reverse the outflow of California-born content and bring recurring, relatively jobs-stable projects back to the state.
With larger credits now available for projects shooting outside L.A. County, the incentive is also encouraging regional production growth. Out-of-zone areas could see increased activity in the coming years, especially from indies looking to maximize their Local Hire Labor bonus.
Finally from a policy perspective, workforce development remains paramount. Behind the strong jobs figures lies Program 4.0’s deepened commitment to a representative and inclusive crew base through the Career Pathways Training Program and diversity initiatives.
Productions that grow California jobs in an equitable and sustainable fashion are the ones best positioned to succeed under Program 4.0.
With the launch of Program 4.0, California’s film incentive program enters a new era—defined by massively increased funding, wider eligibility, and a more deliberate investment in infrastructure and talent.
The $750 million committed annually to the program makes California’s incentive the second largest capped incentive in the country after New York’s recently enhanced film credit.
Whether or not doubled funding will yield twice as many approved projects is yet to be seen, but producers can likely expect to find many more projects shooting in the Golden State.
Still, competition remains fierce. The number of applicants regularly exceeds the number of awards, and strong applications increasingly hinge on more than just budget size or studio backing. Productions that emphasize in-state hiring, out-of-zone spending, robust diversity plans, and workforce training participation are better positioned to rise to the top.
With the California Film and Television Tax Credit Program 4.0 now live, productions can apply for the state’s significantly upgraded production incentives.
The next big opportunities are just around the corner:
Filmmakers can find application details and resources at the California Film Commission’s official site.
To prepare, producers should ensure budgets are locked, California spend estimates are clearly documented, and job creation numbers are realistic and well-supported. Diversity Workplans and Career Pathways commitments should be outlined in detail and tied to measurable outcomes.
With Program 4.0 now in full effect, California is reaffirming its role as a global production powerhouse. Whether you’re shooting a $2 million indie or a prestige streaming drama, California offers more reasons—and more resources—than ever to film in the Golden State.
The dramatically enhanced California program, with $750 million in funds available each year, now provides producers with the support and certainty they need to plan for production in the state.
If you’re planning your next production, be sure to check out Wrapbook’s Production Incentive Center for comprehensive, up-to-date information about incentives offered all across the United States. This invaluable resource helps make finding film savings simple.
