AB 1780, as introduced, Donnelly. Income taxes: credit: motion pictures.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit against those taxes for taxable years beginning on or after January 1, 2011, in an amount equal to a specified percentage of the qualified expenditures, as defined, attributable to the production of a qualified motion picture in California.
This bill would state the intent of the Legislature to enact legislation to allow a transferable tax credit for specified motion pictures in an amount equal to 20% of production and postproduction expenditures, as provided.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature to enact
2legislation to provide a credit against the taxes imposed under the
3Personal Income Tax Law and the Corporation Tax Law for motion
4pictures that would accomplish all of the following:
P2 1(a) Provide for a transferable tax credit in an amount equal to
220 percent of the qualified production and postproduction
3expenditures for the motion picture paid or incurred within
4California, provided the motion picture is not subject to specified
5recordkeeping requirements under federal law.
6(b) Provide for an additional 10 percent credit amount if a
7production company of a motion picture eligible for the tax credit
8includes an imbedded
California promotional logo in the feature
9film, television series, music video, or video game project.
10(c) Include in the calculation of the qualified expenditures the
11number and wages of in-state and out-of-state residents working
12in California, including any employee fringe benefits.
13(d) Allow the credit without including a repeal date.
14(e) Allow the taxpayer to group multiple qualified motion
15pictures, specifically commercials and music videos, in order to
16reach the minimum qualified expenditure amount.
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