California – Motion Picture Production Tax Credit Extended

SALT Report 1665 – The California Assembly approved a bill that extends the California Film and Television Tax Credit for an additional five years and authorizes $100 million in annual tax credits for qualified productions through July 1, 2019.
Qualified applicants may apply the tax credits to their California franchise tax, their income tax, or they may elect to apply all or a portion of their tax credits to obtain a refund of sales and use taxes for qualified purchases.
If the applicant elects to receive a sales tax refund the tax credit may no longer be applied towards any portion of their California franchise tax or income tax liabilities. The tax credit can only be claimed against the general fund portion of the sales and use tax and no interest will be paid on any amount refunded or credited. Credits applied to income tax liabilities are not refundable.
In some cases, the applicant may carryover unused tax credits for up to 5 years or transfer their tax credits to an affiliate.
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