For independent films a $1,000,000 minimum budget is required and a 75 minutes running time.

Credits apply to the first $20,000,000 of qualified expenditures, yielding a project cap of about $9,000,000 for projects independent projects that receive the maximum credit possible.

Projects must film at least 75% of principal photography days wholly in California OR 75% of the production budget must be incurred and used for goods, services and/or wages within California.

A Diversity Tracking and Unlawful Harassment Policy is required.

Applicants receiving a Credit Allocation Letter (CAL) are required to make a financial contribution to fund a Pilot Career Pathways Training Program. 

Approved applicant’s contribution shall be 0.25% (for indies only) of the estimated tax credit allocation, as verified on the CAL. The contribution must be made within 10 business days after the CAL date.

All applicants must participate in the career readiness requirement and contribute to a career based learning and training program approved by the CFC.

The Out-Of-Zone Bonus:A 5% bump on qualified expenditures relating to original photography outside the Los Angeles zone. The 30-mile zone encompasses the area within a 30-mile radius centered on the corner of Beverly Boulevard and La Cienega Boulevard in Los Angeles. Areas outside the zone include Agua Dulce, Castaic, Leo Carillo State Beach, Ontario International Airport, Piru, Pomona, and the Los Angeles County Fairgrounds.

VFX 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.

The Local Hire Labor Bonus: A 10% bump 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. 

Career Pathways Trainee Bonus: Beginning on January 1, 2026 productions that hire trainees from the Career Pathways Trainee pilot program can receive a bonus of up to 2%. Qualifying productions can receive a 0.5% bump for each trainee hired, for up to 4 trainees total.

Bonuses cannot be combined.

California Film & Television Tax Credit Program 4.0 The application process includes: 

Phase I: Eligible productions apply for tax credits.
Phase II: Applications with the highest-ranked jobs ratios submit required documentation.
Phase III: Credit Allocation Letters are issued for approved projects.
Phase IV: Projects with CALs( a received Credit Allocation Letter) enter Phase IV upon the start of principal photography, wrap, post-production, and the audit process.
Phase V: Once the audit process is completed, a “Tax Credit Certificate” is issued  Projects that rank in the top 200% will be notified to submit Phase II documents. Job Ration is determined based on a mathematical equation on qualifying wages, qualified non wage expenditures, the expected credit amount and using "bonus points"  

Contact the California Film Commission for further details. 

Productions must begin principal photography within 180 days of receipt of the CAL (Credit Allocation Letter). Approved projects with a qualified expenditure budget of $100,000,000 or more have 240 days to begin filming

Applications must be submitted online during specific allocation periods:

For independent & non-independent feature films:
Application: August 25 – 27, 2025

Applicants receiving a credit allocation letter (CAL) are required to make a financial contribution to fund a Pilot Career Pathways Training Program. Approved applicant’s contribution shall be 0.25% of the estimated tax credit allocation, as verified on the CAL. The contribution must be made within 10 business days after the CAL date. 

All applicants must participate in the career readiness requirement and contribute to a career based learning and training program approved by the CFC.

Beginning on July 1, 2025, both independents and non-independent productions may elect to receive a refundable tax credit. The election to utilize the refundability option must be made in the first taxable year in which the tax credit certificate is issued to the applicant. Refundability is not an option for an applicant allocated credits under any previous iteration of the program. Once the election has been made, tax credits will be refunded over five years including the year of election. The total amount of tax credits an applicant may elect to make refundable is 90% of the certified tax credit amount that exceeds the applicants CA tax liability in the first taxable year.

*The project cap of $9,000,000 is based upon a maximum credit (45%) on the maximum amount of qualified expenditures allowed for independent projects: $20,000,000.

Background performers (extras), stand-ins and off-camera stunt personnel do qualify.

The Qualified Expenditure Charts and Expenditure Tracking Tips are available at https://film.ca.gov/tax-credit