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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.
California's allure goes beyond its iconic landmarks and perfect weather. The state’s robust support for the arts, coupled with comprehensive incentives, creates an environment where film and television productions can thrive.
From the rugged cliffs of the Pacific Coast to the star-studded streets of Hollywood, California offers unmatched diversity for any script and setting.
California introduced film tax incentives to combat "runaway production" to other states and countries that began offering more competitive incentives in the 1990s.
Recognizing the vital role that filmmaking plays in the state’s economy, California crafted incentives that have evolved over the years to remain attractive and beneficial, ensuring the film industry’s growth and sustainability within the state.
Most recently, in July 2025, California gave its film and television tax credit program a huge boost by more than doubling the program’s annual funding from $330 million to $750 million.
With this massive increase in funding, the new California Film and Television Tax Credit Program 4.0 is now set to offer some of the most competitive production incentives in the country to projects that apply after July 1, 2025.
Projects that applied for California film tax credits and received a Credit Allocation Letter before July 1, 2025 will still earn incentives under the Program 3.0 guidelines.
Below, we’ll cover both what Program 4.0 now offers in the way of tax credits as well as briefly recap Program 3.0 for projects that qualified under that previous iteration of the program.
The California Film and Television Tax Credit Program 4.0 offers a 35% to 45% tax credit for qualifying productions.
Beginning with Program 4.0, all productions allocated credits may elect to receive a refundable tax credit. This means that production companies can now get refunded the value of their California film tax credit, whether they have tax liability in the state or not.
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.
Independent feature film projects may also opt to transfer their credits. For all other production types, California film tax credits are non-transferable.
In order to qualify for California film tax credits, all productions, from independent films to studio features to TV pilots, must spend at least $1 million in the state. TV series must spend at least $1 million per episode.
If projects meet this minimum spend requirement and qualify for California film tax credits, they can see generous savings in the form of tax credits. Feature film projects—including indies and non-indies—as well as most television projects are all eligible for a base tax credit of 35%.
Television series relocating to the state in their first year of receiving a California tax credit are eligible for a base credit of 40%.
Beyond these sizable base credits, Program 4.0 provides additional bonuses ranging from 5% to 10% for specific qualifying activities like filming outside the Los Angeles zone, qualifying visual effects spend, or utilizing local labor.
We’ll walk through exactly how these bonuses can help you maximize your CA film tax credit in just a moment. But first, let’s briefly recap the previous iteration of the program:
Program 3.0 still remains active for projects that applied for California production tax credits and received a Credit Allocation Letter before July 1, 2025.
Under Program 3.0, independent feature films qualify for a 25% base transferable film tax credit. Feature films, new TV series, mini-series, and TV pilots all qualify for a 20% base non-refundable, non-transferable tax credit. And relocating TV series qualify for a 25% base non-refundable, non-transferable tax credit.
In addition to the base, all productions qualify for additional bonuses under Program 4.0.
If you previously qualified for California film tax credits under Program 3.0, or if you’re curious to learn more about this previous iteration of the program, you can find a full breakdown from the California Film Commission here.
So who can qualify for California’s generously enhanced Program 4.0 film tax credits? Even more projects than under Program 3.0.
In addition to the feature film and television projects that could qualify for Program 3.0, Program 4.0 also opens eligibility to:
Previously eligible project categories remain eligible and include:
Special qualifying criteria also exist for relocating television series under Program 4.0, boosting the amount of money these projects can see returned through film tax credits.
Everything from cast and crew payroll to physical production expenses like equipment rentals and property used or obtained in California can all be eligible for California film tax credits.
When considering what expenses will qualify for a California film tax credit, it’s useful to think of your production expenses falling into one of two categories: payroll and physical production spend.
The first, and often largest, portion of production expenditures include payments made to cast and crew.
Under Program 4.0, payments made to both below-the-line residents and nonresidents are eligible for a base tax credit of 35% (40% for TV series relocating to CA in their first year of receiving a tax credit).
Importantly, payments made to above-the-line cast and crew will not qualify for California film tax credits. CA film tax credits also have no compensation cap, meaning there’s no set limit on how much in below-the-line payments can qualify.
Physical production expenses comprise the other portion of expenditures that qualify for California film tax incentives.
For most productions, physical production spending incurred within the state will qualify for a base tax credit of 35%. Once again, TV series relocating to CA within their first year of receiving a credit can qualify for a base of 40% back on production spending.
This includes everything from set construction, and location fees, to props, wardrobe, and equipment rentals. Even certain post-production expenses incurred within California can qualify for film credits.
As we mentioned earlier, projects that qualify for California film credits can qualify for an additional bump in their award, above and beyond the 35% or 40% base credit. These bonuses, which the California Film Commission calls credit uplifts, apply to certain spending incurred outside the Los Angeles 30-mile zone and certain VFX expenditures.
Under Program 4.0, California’s film tax credit uplifts include:
Non-independent feature films and all television projects (except for relocating TV) may receive an additional 5% bump for qualified expenditures related to original photography outside the LA Zone, from pre-production through strike.
Eligible expenses include qualified wages paid for services performed outside the Zone, items purchased or leased and used exclusively outside the Zone, and a prorated amount of items purchased or leased outside the Zone and used both outside and inside the Zone.
Non-Independent feature films and all television projects (except for relocating TV) may receive an additional 5% bump for qualified visual effects expenditures. To be eligible, the VFX work in CA must represent either 75% or more of the total worldwide VFX expenditures or a minimum of $10 million in qualified California VFX expenditures.
All non-independent and independent feature film and television projects (except for relocating TV series) are eligible to receive an additional 10% bump for qualified wages paid to CA residents who reside outside the LA Zone, for work performed outside the LA Zone.
Relocating TV series are eligible to receive an additional 5% tax credit for such wages.
Beginning on January 1, 2026, up to a 2% bump will be available 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.
In order to qualify for California film tax credits, filmmakers must adhere to a few specific and important requirements outlined by the California Film Commission.
First and foremost, all projects must meet the program’s current minimum spend threshold of $1 million. TV series must spend at least $1 million per episode in order to qualify.
The CFC also places a cap on the amount of money that any single project can earn in film tax credits. Independent feature films can earn credits on the first $20 million of qualified expenditures (i.e., indies can earn a maximum credit of 45% on up to $20 million in spend, for a project cap of $9 million).
All other projects can earn credits on the first $120 million in qualified expenditures, plus uplifts.
Additionally, television episodes must be at least 20 minutes long in order for television projects to qualify.
A detailed audit and submission of production details are required to ensure compliance with the state’s guidelines.
For more on the current requirements of the California Film Tax Credit Program 4.0, you can visit the program’s website.
Applications are accepted during specific periods each fiscal year, with varying dates for different types of projects. It’s crucial to stay updated on these windows by regularly checking the California film tax credit program website.
The application process involves detailed documentation, including a jobs ratio calculation that assesses the economic impact of your project based on several factors like local hiring and spending.
All applications can be made through the California film tax credit program website.
Specifics, including guidelines and checklists for the California film tax credit application can also be found here:
The most unique component of the application is something called the jobs ratio.
The jobs ratio is basically a scale that weighs how much economic impact your particular project will have on the state. Things like resident hires, location, out-of-zone hires, and your VFX cost can impact your final jobs ratio.
The California Film Commission will take a percentage of applicants with the highest jobs ratio from any given application window and, depending on other requirements, admit those applicants into the program.
Given the weight the Commission gives to the jobs ratio, it can be tempting to inflate your numbers when calculating. You should be very careful to avoid this.
The State carefully looks at calculations to ensure their accuracy. If your numbers do not line up with what you actually spend and produce in the state, the Commission may reduce your returning credit after completing their final audit.
In all cases, you will be required to tag and track your production budget, submit your screenplay and proof of financing, and write a detailed narrative statement for your California tax credit application.
Yes! And if you're not exploring these local programs, you could be leaving money on the table.
Regional film offices throughout the Golden State can help productions find locations, hire local crew, and secure all the necessary permits. A few even offer their own film production rebates. Best of all, these regional California film incentives can be combined with the statewide incentive, helping producers stretch their savings even further.
Let’s take a closer look at some of the most popular regional incentive programs across California.
Sacramento offers two ways for productions to capture extra savings: the Sacramento Film + Media Grant Program and the Sacramento Film + Media Rebate Program.
The Grant Program awards up to six $10,000 production grants and two $5,000 post-production grants each year. Productions must shoot at least 50% of the project in the Sacramento region with a minimum of two locations in the city or complete at least 75% of post-production within city limits.
Grants can cover required city services like police and fire personnel, as well as reimburse local expenses such as hotel nights, rentals, catering, and local hires.
The Rebate Program is designed for larger projects with a City of Sacramento budget over $1 million. It offers a 100% reimbursement of required city services and permit fees, plus a 25% rebate on qualified local spend, including lodging, equipment, and local labor. City shoot days must total at least five days or 20% of the production’s overall schedule.
Rebates are capped at $250,000 annually, and funds are available on a first-come, first-served basis.
The Scene in San Francisco Rebate Program refunds up to $600,000 for qualifying productions. The rebate covers daily use fees paid to Film SF and other city department fees, such as those for the Port of San Francisco, SFPD, SFFD, SFMTA, and Recreation and Parks. Police costs are eligible for reimbursement for up to four officers per day.
To qualify, productions with budgets under $3 million must film at least 55% of principal photography in the city; productions with budgets of $3 million or more must hit 65%. A San Francisco production office is also required, along with a demonstrated effort to hire local residents.
Applications must be submitted at least 45 days before principal photography, and refunds are typically issued one to two months after final documentation is submitted.
The City of Santa Clarita Film Incentive Program has been helping productions stay in L.A. County since 2009.
The program refunds basic film permit fees for qualifying productions and offers up to 50% back on transient occupancy taxes for eligible hotel stays—capped at $7,500. Productions based in the city or that frequently pull local permits receive priority, as do projects approved for the California Film & Television Tax Credit.
Santa Clarita also helps productions save on safety costs by providing its contract rate for L.A. County Sheriff deputies assigned to traffic control and security. The city manages the entire process through the Santa Clarita Film Office, streamlining both permitting and law enforcement coordination.
Shasta County’s program, administered by Film Shasta, combines cost savings with streamlined permitting support. Qualifying productions can receive a 100% reimbursement of permit application fees, a hotel rebate of roughly $10 per room night for stays in Redding, and a 5% rebate on direct local spend.
The incentive is capped at $50,000 per production.
Film Shasta also acts as a one-stop liaison for coordinating permits across city, county, state, and federal jurisdictions, helping productions save time and avoid logistical headaches.
Utilizing a California film tax credit can be an excellent way to offset the cost of your film. While the process may be selective, once you’ve been awarded a tax credit, you can write-off expenses responsibly and save cold hard cash.
If filming on the East Coast is more your thing, discover how to tackle the same process for attaining New York film tax credits. Or check out our brand new Production Incentive Center, full of useful tools for comparing and finding production incentives.
Welcome to the bustling, innovative heart of the film industry—California. With its diverse landscapes and historic connection to cinema, California remains a top destination for filmmakers from across the globe.
But it’s not just the scenery or heritage that draws productions; California’s enticing film tax credits play a huge role, too.
In this guide, we’ll explore how to leverage California film tax credits to make your next project financially feasible and creatively outstanding. We’ll walk through the ins and outs of the California film tax credit program including what it is, how to apply, and how a California film tax credit can help your next production save some serious change.
Before diving deep into the world of California film tax credits, we invite you to explore Wrapbook's Production Incentive Center. This tool offers a wealth of information on film tax incentives across the U.S. with detailed insights into California's offerings.
Wrapbook’s Production Incentive Center features tools like the State Incentive Map, which allows you to easily navigate incentive options across the country.
The Incentive Comparison Tool can help you discover how film tax incentives in different states stack up against each other.
You can even talk to an AI Incentives Expert to learn about the latest legislation and to get a clear, concise explanation of how to make incentives work for you.
The Production Incentive Center is an invaluable resource to help you make informed decisions about where to locate your production.
