California Motion Picture and Television Production Credit Credit code 223, 237, 239, 245, and 248

Overview

You may qualify for this credit if you produced a motion picture or television show in California. There are five types of motion picture and television production credits currently available. You can claim any of the following:

  • Original California Motion Picture and Television Production Credit
  • New California Motion Picture and Television Production Credit
  • Program 3.0 California Motion Picture and Television Production Credit
  • Soundstage Filming Tax Credit, enacted under Senate Bill 144
  • Program 4.0 California Motion Picture and Television Production Credit, enacted under Senate Bill 132 allows for a qualified taxpayer to make a one time election to have the credit refunded. Refundability provisions are covered in R&TC 17053.98.1(k)(1)

If you are a corporation, you may use the following credits to reduce your tax below your Tentative Minimum Tax (TMT):

  • Original California Motion Picture and Television Production Credit
  • New California Motion Picture and Television Production Credit
  • Program 3.0 California Motion Picture and Television Production Credit
  • Program 4.0 California Motion Picture and Television Production Credit
  • Soundstage Filming Tax Credit

For individual taxpayers, you may use the following credits to reduce your regular tax below your TMT:

  • Program 3.0 California Motion Picture and Television Production Credit
  • Program 4.0 California Motion Picture and Television Production Credit
  • Soundstage Filming Tax Credit

For individual taxpayers, you cannot use the following credits to reduce your regular tax below your TMT:

  • Original California Motion Picture and Television Production Credit
  • New California Motion Picture and Television Production Credit

You cannot use this credit to reduce the Alternative Minimum Tax.

If the credit was generated by a Single Member Limited Liability Company (SMLLC), treated as a disregarded entity, the limitations regarding the amount of credit that can be used by the owner of the disregarded entity will apply.

Direct your questions by email to FTB Motion Picture Credit

Check if you qualify

Tax credits are allocated and certified by the California Film Commission (CFC).

How to apply

Create an account and apply at California Film & Television Tax Credit Program.

How to claim

  • File your income tax return
  • Include a separate California Motion Picture and Television Production Credit (FTB 3541, coming soon) to claim each of these credits
    • Use the name Original California Motion Picture and Television Production Credit for certificate numbers 1000-4999 (code 223)
    • Use the name New California Motion Picture and Television Production Credit for certificate numbers 5000-6999 (code 237)
    • Use the name Program 3.0 California Motion Picture and Television Production Credit for certificate numbers 7000-7999 (code 239)
    • Use the name Program 4.0 California Motion Picture and Television Production Credit for certificate numbers 8200-8999 (code 248)
    • Use the name Soundstage Filming Tax Credit for certificate numbers 8000+ (code 245)
  • Visit Instructions for FTB 3541 (coming soon) for more information
  • You can carry over any excess credit that is not used in the year it is allocated for an additional six years for the Original and New California Motion Picture and Television Production Credits
  • Program 3.0 California Motion Picture and Television Production Credit as well as the Soundstage Filming Tax Credit can be carried over for an additional nine years after it is allocated
  • Program 4.0 California Motion Picture and Television Production Credit can be carried over for an additional eight years after it is allocated

General rules

  • You can use all five credits at the same time to reduce your income, franchise, or sales and use tax liabilities
  • The credit can be assigned either under the motion picture and television credit rules or the general credit assignment rules. You cannot assign the same credit under both rules
  • If you elect to apply a portion or all of your credit against sales and use tax, you must inform us about the election on FTB 3541
  • You are required to report allocation, assignment, purchase, sale, and application of credit against income/franchise tax with us (see below) and sales and use tax with California Department of Tax and Fee Administration

Assignment rules

  • Once made, the assignment of this credit is irrevocable
  • If the credit was generated by an SMLLC, treated as a disregarded entity, the limitations regarding the amount of credit that can be used by the owner of the disregarded entity will not apply to the assignee

Reporting an assignment

  1. File your income tax return
  2. To assign credit under:
    • Motion picture and television credit rules, include a separate FTB 3541 (coming soon) for each of the four credits
    • General credit assignment rules, refer to credit assignment
  3. Each assignee must also file a separate form FTB 3541 (coming soon) with complete details to report receiving the assigned credit

Selling the credit

  • You may sell the entire credit attributable to an Independent Film or a part of it to an unrelated party. But you cannot sell it to multiple parties
  • If you have purchased the credit, you can only apply it against your income or franchise tax liabilities. You cannot resell the credit
  • If you have purchased a credit that was generated by an SMLLC that is a disregarded entity, the limitations regarding the amount of credit that can be used by the owner of the disregarded entity will not apply to you
  • Whether you are the seller or the buyer of the credit, you will need to report your gain upon sale or purchase of the credit

Reporting a sale

Last updated: 01/02/2026