California extends the Film and Television Tax Credit Program to 2025 July 2020 Tax News

In August 2018, California lawmakers enacted a third version of the California Film and Television Tax Credit Program known as Program 3.0. This program is a 5-year incentive set to allocate $330 million annually to qualified taxpayers.

Taxpayers can apply for an allocation beginning in July of 2020, when Program 2.0 expires, and continue through June 30, 2025.

For taxable years beginning in 2020, Program 3.0 credit can offset:

• California income tax
• Franchise tax
• Sales and use tax liabilities

Taxpayers can continue to use the carryovers from the former credits against their taxes until they expire.

The California Film Commission (CFC) will continue administering this program. Certificates under Program 3.0 will be issued beginning July 1, 2020, with certificate numbering starting at 7000.

Reporting changes - California Motion Picture and Television Production credit

We are modifying California Motion Picture and Television Production Credit (FTB 3541) for the 2020 taxable year.

• The form will contain the following new items:
  1. A "check box" to indicate if the credit is the:
     • Original credit
     • New credit
     • Program 3.0 credit
  2. An additional entry line for reporting the copyright registration number associated with the certificate.
• A separate FTB 3541 must be used when reporting each of the three credits.
• Both the certificate and associated copyright registration number should always be provided on FTB Form 3541 when reporting or using the credit.
• Pass-through entities, that are allocated this credit, should provide the certificate and copyright registration number details to their: members, owners, and shareholders reporting and/or utilizing the credit.

To claim the credit, refer to the information in the table:

Visit our Motion Picture and Television Production Credit website for additional information.