SB 878: Taxes: credits: qualified motion pictures.

Existing law allows credits under the Personal Income Tax Law and the Corporation Tax Law for taxable years beginning on or after or after January 1, 2016, to be allocated by the California Film Commission on or after July 1, 2015, and before July 1, 2020, as provided. Existing law, in lieu of these credits, allows application of the credit amount against qualified state sales and use taxes, as provided. Existing law, on or before July 1, 2019, requires the Legislative Analysts Office to prepare reports related to the effectiveness and administration of these film tax credits under the Sales and Use Tax Law, the Personal Income Tax Law, and the Corporation Tax Law.

This bill would instead require the Legislative Analysts Office to prepare the report on or before January 1, 2023.

Existing law allows credits under the Personal Income Tax Law and the Corporation Tax Law for taxable years beginning on or after January 1, 2020, to be allocated by the California Film Commission on or after July 1, 2020, and before July 1, 2025, except as provided. Existing law limits the aggregate amount of these credits to be allocated in each fiscal year to $330,000,000 plus additional specified amounts, and authorizes the California Film Commission, if, on July 1, 2025, it determines that credits remain unused and have not been added to credit amounts available for allocation under a successor credit allowance, to continue to make allocations of the unused credits until such time as the unused credits are fully utilized, as provided.

This bill, on or after July 1, 2025, would instead authorize the California Film Commission to allocate any previously allocated credits not certified, as defined, that have not previously been added to credit amounts available for allocation under specified film tax credits allowed under the Personal Income Tax Law and the Corporation Tax Law. The bill, on or after July 1, 2025, would additionally authorize the California Film Commission to allocate any unused credit allocation amount for the preceding fiscal year, and the portion of any unused credit allocation amount attributable to certain other film tax credits.

This bill would appropriate the sum of $5,000 from the General Fund to the California Film Commission for work necessary to develop rules associated with the programs established under specified film tax credits allowed under the Personal Income Tax Law and the Corporation Tax Law.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.