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California Considers Expanding Film Tax Credits

  • Aug 26, 2014 | Gail Cole

 California: Could additional film credits boost the industry?

Update, 9.22.14: California AB 1839 was signed into law on September 18, 2014. The California Film Commission is currently developing new regulations and guidelines.

Would the California film industry return to its heyday if film tax credits were increased from $100 million to $400 million per year? Many people in the industry—and state government—seem to think it would. And so Assembly Bill 1839 seeks to do just that.

In addition to other features, AB 1839 would:

  • Remove the $75 million cap on the budget for a qualified motion picture, replacing it with specific caps on the credit amounts for television and film productions.
  • Provide new incentives for productions located outside of the Los Angeles zone.
  • Provide a credit of 20% of the qualified expenditures attributable to a California-produced qualified motion picture.
  • Redefine “qualified motion picture.”

AB 1839 also provides a credit for qualified state sales and use taxes and defines qualified sales and use taxes. In lieu of a credit, a sales and use tax refund may be obtained. Read the full text of AB 1839.

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photo credit: MD Film Festival 2007 via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.