In order to qualify for the California Soundstage tax credit, projects must:

- Utilize a minimum of 75% of the production budget for goods, services, and/or
wages within California OR shoot a minimum of 75% of the principal photography days wholly in California.

- At least 50% of the principal photography stage shooting days must be filmed on a Certified Studio Construction Project soundstage or soundstages. The certified soundstage or soundstages must be utilized for six hours or more
for the day to be considered a principal photography stage shooting day.

- At least $5,000,000 in qualified wages for filming on a Certified Studio Construction Project soundstage or soundstages must be incurred during the production period. Qualified soundstage wages include wages for production services performed within the production period on soundstages and ancillary buildings certified as part of a Certified Studio Construction Project. Qualified soundstage wages do not include wages for maintenance of the soundstages and ancillary buildings or for services at locations or facilities that are not part of the Certified Studio Construction Project.

Projects must either be:

- Produced by an entity that is more than 50% owned directly or indirectly by the owner of the certified soundstage or soundstages where the project is filmed OR produced by an entity which has entered into a 10-year lease with the owner of the certified soundstage or soundstages where the project is filmed.

Applicants receiving a credit allocation letter (CAL) are required to make a financial contribution to a Pilot Career Pathways Training Program. This contribution must be 0.50% of the estimated tax credit allocation, as verified on the CAL. The contribution must be made within 10 business days after the CAL date.

5% Visual Effects Bonus:
Television projects (except relocating TV series) and feature films are eligible to receive an additional 5% tax credit for visual effects. Visual effects (VFX) expenditures in-state must equal at least $10,000,000 or 75% of total worldwide VFX costs.

5% Out of Zone (OZ) Expenditures Bonus:
Television projects (except relocating TV series) and feature films are eligible to receive an additional 5% for filming outside the Los Angeles Zone (LA zone).

Qualified wage and non-wage expenditures outside the LA zone are eligible for a 5% uplift – for both principal photography and second units – solely during the applicable period.

Non-wage expenditures for items purchased and/or rented outside the Los Angeles zone and totally consumed outside the LA zone will be allowed 100% of the items’ cost, as substantiated by proper documentation.

Non-consumable expenditures that are purchased and/or rented outside the LA zone and are used both outside and inside the LA zone are eligible for an uplift if they fall under a qualified non-wage category. Expenditures are calculated based on the percentage of the OZ principal photography days in relation to the total principal photography days in California.

Local Hire Labor Bonus:
Non-independent productions (feature films, new TV series, recurring TV series, pilots, or miniseries/limited series) are eligible to receive an additional 10% tax credit for qualified local hire labor.

Independent films and relocating TV series are eligible to receive an additional 5% tax credit for qualified local hire labor.

Proof of identity and proof of the location where the qualified individual resides is required and must be collected by the applicant (e.g., production accountant) at the time of hire and provided to the CPA performing the audit.

4% Diversity Goals Uplift
All projects are eligible to receive a Diversity Goals Uplift of up to 4% if they meet or make a good-faith effort to meet the Diversity Goals that were set in the Diversity Workplan required at the time of application.

In order to apply for a Soundstage Certification (Phase A), applicants must:

Submit an application through the Phase A application portal on the California Film Commission (CFC) website. Required information includes: 

- applicant information including taxpayer ID, business structure, and contacts
- a Certified Studio Construction Project Verification Report prepared by a Certified Public Accountant (CPA) verifying compliance with program requirements
- a Project Labor Agreement (if applicable) and foundation/structural building permits
- a description of the soundstage project, including maps identifying the soundstages and any ancillary structures.

The CFC will review the application within 30 business days. If approved, a Soundstage Certification Letter (SCL) is issued, allowing the project to proceed to Phase B.

In order to apply for tax credits for a motion picture project through the Soundstage Filming Tax Credit Program (Phase B), applicants must:

Submit an application through the Phase B application portal. Required information includes:

- applicant information including entity and taxpayer ID, business structure, and eligibility attestation
- Phase A Soundstage Identifier Number(s)
- Production details including shoot days, soundstage filming days, budget (qualified and non-qualified wages), and financial sources
- Details on Visual Effects (VFX), out-of-zone expenditures, local hire labor, and diversity goals if applicable.

Upon approval, the CFC will issue a Credit Allocation Letter (CAL) that estimates the tax credit allocation. The project must commence filming within 180 to 240 days.

Applications are considered on a first-come, first-served basis.

Once 75% of program funds are allocated, a production alert is issued, and applicants will have a final 30-day window to submit their applications.

Independent film projects are eligible for a transferable tax credit. All other qualified projects are eligible for a non-transferable tax credit. 

*The program has a total of $150,000,000 in funding allocated until January 1, 2032.

**The tax credit allocation is capped at the greater of $12,000,000 per project, or $750,000 per episode of a season of a television series, inclusive of all bonuses.