CALIFORNIA

California can attribute its domination in the entertainment and film industry to its wide array of amenities and services. The state boasts over 800 miles of picturesque coastline views down the coast-hugging Highway 1. The diverse climate of the state allows for a multitude of filming locations, from the vast deserts and grasslands of Southern California to temperate forests of Northern California, not to mention the iconic mountain and lake views of Lake Tahoe located along the Sierra Nevada in Central California. Combined with easy access to expert crews, state-of-the-art facilities, and a culture that prioritizes the creation of art, it is no question as to why California is known as the modern-day capital for film production in North America.

Incentive Type

Non-Transferable Non-Refundable Tax Credit

Incentive Amount 20-30% (residents and non-residents)

Minimum Spend $1,000,000

Bonus

California Tax Credit Program offers bonuses based on the project’s job ratio. These are judged in 3 different categories that may not be combined: out-of-zone filming, visual effects, and music scoring / track recording labor.

• Out-of-zone filming bonus: determined by the percentage of principal photography days outside of the Los Angeles 30-mile zone (found here).

• Visual effects bonus: based on services performed in-state. There is no minimum spend requirement.

• Music scoring/ track recording labor bonus: based on wages paid to scoring musicians and contractors employed solely for the purposes of recording music for the project.

Audit Requirements

Application

An agreed upon procedures report by an independent California CPA is required.

Sales Use Tax Relief Yes

Hotel Occupancy Tax Relief Yes

Sunset Date June 2025

Nevada

A desert oasis of moral ambiguity, gambling, vice and unadulterated entertainment has made Las Vegas and Nevada at large a distinguished cultural contributor to the entertainment industry. The locations offered instate provide some of the most contrasting backdrops for any production need. The Las Vegas Strip offers glitz and visual stimulation in its most American form, while 30 miles away, the most bleak environments with other-worldly attributes can be found in lifeless deserts and dried lakebeds. Recently, local crews have worked with production teams to produce critically acclaimed films and TV shows like the Hangover series and Jason Bourne .

Incentive Type Transferable Non-Refundable Tax Credit

Incentive Amoun 15-25%

Minimum Spend $500,000

Bonus 5% of the cumulative qualified expenditures and production costs if more than 50% of the belowthe-line personnel are Nevada residents

Audit Requirements CPA audit required by a Nevada licensed CPA

Application Apply no earlier than 90 days prior to the start of principal photography.

Sales Use Tax Relief No

Hotel Occupancy Tax Relief Yes

Sunset Date