Film & TV Tax Credit Program 3.0
Tax Credit Program 3.0
Jobs Ratio Ranking
A project’s jobs ratio score can be computed prior to submitting an application by using the jobs ratio calculator tool. Note for Mac Users: Calculator downloads as an Excel file and contains formulas which do not correctly import into a Numbers file. Please see below for an illustration of how the jobs ratio calculation process works.
Applications are ranked within categories based upon their jobs ratio score. The categories are: TV Projects, Relocating TV Series, Indie Feature Films and Non-Indie Feature Films.
- The Film Commission determines the amount of tax credits available for each category prior to each application period.
- A list of finalists is determined for each category once the application period closes.
- This list includes those projects that would be selected (based on their jobs ratio score) if the allocation of tax credits for the category was double (or 200%) the predetermined amount.
- The Film Commission references these finalists as “the top 200% projects.”
- These projects advance to “Phase II” of the selection process for further evaluation.
- When Phase II process is complete (about 3 weeks), the highest ranked projects (top 100%) receive a Credit Allocation Letter indicating the amount of tax credits reserved.
- Remaining projects in Phase II are placed on the waitlist according to their jobs ratio score.
- The waitlist expires when the next allocation period for the same-category begins.
Please refer to Qualified Budget, Tagging, and Tracking Tips which delineate the types of spend that are “qualified wage” (QW ) and “qualified expenditures” (QE).
When tagging and entering wage data, note that qualified wages must be paid directly by the applicant or its payroll service to be considered a “qualified wage” (QW). Wages paid via third party contracted vendor should be included as a “qualified non-wage expenditure” (QE). When calculating the jobs ratio, do not include contigency or bond amounts.
Bonus points for Visual Effects are based on services performed in-state. Please refer to the applicable Qualified Expenditure Chart to determine which expenditures qualify for the bonus points. There is no minimum VFX spend requirement with respect to bonus points.
Music Scoring / Track Recording Labor
Music Scoring/Track recording wages paid to scoring musicians, including the following positions: Instrumental musicians, vocalists, music arrangers, orchestrators, Musical Instrument Digital Interface (MIDI) transcribers, music copyists, music librarians, conductors (unless also composer), and musician and choral contractors employed solely for the purpose of recording music for the project.
Out of Los Angeles Zone
Bonus points are determined by the percentage of principal photography days outside the Los Angeles 30-mile zone in relation to total principal photography days in-state.
Although the total number of bonus points possible is 32, the base Jobs Ratio may be increased only 25 bonus points (25%).