In order to qualify for the California Soundstage tax credit, projects must:

  • Utilize a minimum of 75% of the production budget for goods, services, and/or wages within California OR shoot a minimum of 75% of the principal photography days wholly in California.

  • At least 50% of the principal photography stage shooting days must be filmed on a Certified Studio Construction Project soundstage or soundstages. The certified soundstage or soundstages must be utilized for six hours or more
for the day to be considered a principal photography stage shooting day.

  • At least $5,000,000 in qualified wages for filming on a Certified Studio Construction Project soundstage or soundstages must be incurred during the production period. Qualified soundstage wages include wages for production services performed within the production period on soundstages and ancillary buildings certified as part of a Certified Studio Construction Project. Qualified soundstage wages do not include wages for maintenance of the soundstages and ancillary buildings or for services at locations or facilities that are not part of the Certified Studio Construction Project.

Projects qualifying for the Soundstage Film Tax Credit Program before January 1, 2025 must either be produced by an entity that is more than 50% owned directly or indirectly by the owner of the certified soundstage or soundstages where the project is filmed OR produced by an entity which has entered into a 10-year lease with the owner of the certified soundstage or soundstages where the project is filmed.

Applicants receiving a credit allocation letter (CAL) are required to make a financial contribution to a Pilot Career Pathways Training Program. This contribution must be 0.50% of the estimated tax credit allocation, as verified on the CAL. The contribution is due within 30 business days of the CAL date, and late payment results in revocation of the credits.

Out-of-Zone Bonus: Television projects (except relocating TV) and non-independent feature films may receive an additional 5% on qualified expenditures relating to original photography outside the Los Angeles zone.

The Zone is the area within a 30-mile radius of the corner of Beverly Boulevard and La Cienega Boulevard in Los Angeles. Areas outside the Zone include Agua Dulce, Castaic, Leo Carrillo State Beach, Ontario International Airport, Piru, Pomona, and the Los Angeles County Fairgrounds.

VFX Bonus: Television projects (except relocating TV) and non-independent feature films may receive an additional 5% on qualified visual effects expenditures. At least 75% of worldwide VFX expenditures must be incurred in California, or at least $10,000,000 must be spent on qualified California VFX.

Local Hire Labor Bonus: An additional 10% on qualified wages for services performed outside the Los Angeles Zone by California residents who live outside the Zone. Relocating TV series receive an additional 5%.

Uplifts can be earned together, but the total allocation, including uplifts, is subject to the per-project cap.

In order to apply for a Soundstage Certification (Phase A), applicants must:

Submit an application through the Phase A application portal on the California Film Commission (CFC) website. Required information includes: 

  • applicant information including taxpayer ID, business structure, and contacts
  • a Certified Studio Construction Project Verification Report prepared by a Certified Public Accountant (CPA) verifying compliance with program requirements
  • a Project Labor Agreement (if applicable) and foundation/structural building permits
  • a description of the soundstage project, including maps identifying the soundstages and any ancillary structures.

The CFC will review the application within 30 business days. If approved, a Soundstage Certification Letter (SCL) is issued, allowing the project to proceed to Phase B.

In order to apply for tax credits for a motion picture project through the Soundstage Filming Tax Credit Program (Phase B), applicants must:

Submit an application through the Phase B application portal. Required information includes:

  • applicant information including entity and taxpayer ID, business structure, and eligibility attestation
  • Phase A Soundstage Identifier Number(s)
  • Production details including shoot days, soundstage filming days, budget (qualified and non-qualified wages), and financial sources
  • Details on Visual Effects (VFX), out-of-zone expenditures, local hire labor, and diversity goals if applicable.

Upon approval, the CFC will issue a Credit Allocation Letter (CAL) that estimates the tax credit allocation. Principal photography must begin within 180 days of the CAL, or within 240 days for projects with a budget of $100,000,000 or more.

A complete Phase B application must be filed at least 30 days before the 60-month deadline, measured from the soundstage certification.

Once 75% of program funds are allocated, the CFC issues a production alert and opens a final 30-day window for Phase A applications.

Independent film projects are eligible for a transferable tax credit. All other qualified projects are eligible for a non-transferable tax credit that may be assigned to an affiliate.

For credits allocated on or after July 1, 2025, all productions may make a one-time, irrevocable election to have their credits refunded.

Taxpayers that purchase credits from an independent producer cannot elect a refund.

The safety advisor and Final Safety Evaluation Report requirements do not apply to Soundstage Filming Tax Credit Program (Phase B) projects.

*$150,000,000 is the total program allocation over ten years (2022 through 2032), awarded on a first-come, first-served basis.

†The per-project allocation cap is the greater of $21,000,000 or $1,300,000 per television episode, inclusive of all uplifts.

Soundstage Filming Tax Credits can be carried over for an additional eight years after allocation.