To be considered for the first day's allocation, applications must be received at the California Film Commission's offices no earlier than 9:00 a.m. and no later than 3:00 p.m. Any application received before 9:00 a.m. on July 1, 2009 will be returned to its sender unprocessed; any application received after 3:00 p.m. on July 1st will be processed the following day. If an applicant plans to submit a Tax Credit Application for multiple projects, a separate Tax Credit Application must be submitted for each project in a separate envelope.

Only in California -- The tax credit applies to costs of production starting July 1, 2009 but the actual tax credit cannot be claimed on a tax return until 2011. Qualified taxpayers can carryover the tax credits for 5 years and transfer the tax credit to an affiliate. The tax credits, however, are not refundable.

The 20% Tax Credit for a "qualified motion picture" applies to:

1. New television series (1/2 hour shows) licensed for original distribution on basic cable with a budget of at least $1 million (other exclusions apply);
2. Feature Films with a production budget of at least $1 million, but less than $75 million; and
3. Movies of the week, or a miniseries with a production budget of at least $500,000.

The 25% Tax Credit for a "qualified motion picture" applies to:

1. A television series that filmed all of its prior season, or seasons, outside of California; OR
2. An "independent film" produced by a company that is NOT publically traded, that does not have an investment exceeding 25% from a publically traded company, and that has a production budget of at least $1 million but less than $10 million.

A Qualified Motion Picture Must Also Meet The Following Three Additional Requirements:

1. 75% of either the production days must occur in the State of California, or 75% of the total production budget must be spent in California;
2. The principal photography must start within 180 days of the Tax Credit Application being approved; and
3. Postproduction must be completed within 30 months of the Tax Credit Application being approved.

The total amount of credits available is $100 million per year for 5 years, i.e. through 2013. Of this $100 million, $10 million per year is set aside for independent films. The credit is allocated on a first-come, first-served basis. It should also be noted that not all production costs are eligible for the credit. Costs incurred before the Tax Credit Application is approved are not eligible. In addition, compensation paid to writers, directors, music composers and directors, producers, and all performers, other than background actors with no scripted lines, are not eligible for the credit.

If you think there is even the slightest possibility that you may qualify, visit the California Film Commission’s Website, or stop by their office at 7080 Hollywood Blvd., Suite 900 Hollywood, CA 90028 for more details. Here is a link to The Tax Credit Application (.PDF).