The first round of film projects selected for California’s new Film & TV Tax Credit Program 3.0 bodes well for the resumption of production in the Golden State, with nine feature films representing a wide range of budgets and diverse storylines. Program 3.0–the state’s third-generation tax credit program–launched on July 1st (concurrent with the state’s new fiscal year) to replace the expiring five-year Film & Television Tax Credit Program 2.0 that began in 2015.
Netflix’s Gray Man is the latest big-budget feature film win for California’s tax credit program. The action-thriller starring Ryan Gosling and Chris Evans will bring an estimated $102 million in below-the-line wages and other qualified expenditures to the state, behind only Captain Marvel on the list of big-budget tax credit film projects over the years. As with all of the state’s film and TV tax credit projects, overall spending for Gray Man will be significantly greater than its “qualified” spending with the inclusion of above-the-line wages and other expenditures that do not qualify for incentives under California’s very targeted tax credit program.
“After announcing two relocating TV series earlier this month, our new tax credit program continues to get off to a great start with today’s list of film projects,” said California Film Commission executive director Colleen Bell. “Production activity is ramping back up in California amid COVID-19 with safety remaining a top priority, and Program 3.0 is attracting the kind of big budget films that generate a considerable amount of jobs and in-state spending.”
Based on data provided with each tax credit application, the nine film projects (five independent, four non-independent) announced today are on track to generate a total of nearly $284 million in qualified in-state expenditures. They will employ an estimated 1,340 crew, 342 cast and 14,397 background actors/stand ins (the latter measured in “man days”) over a combined 374 filming days in California. They will also generate significant postproduction jobs and revenue for California VFX artists, sound editors, sound mixers, musicians and other workers/vendors.
Three of the five independent projects (Nightfall, the Jessica Chastain drama Losing Clementine and the sports drama Sweetwater about the first African American player in the NBA) were accepted into Program 3.0’s new $10 million-and-under qualified spending category, which reserves funds specifically for lower-budget independent films.
“We are thrilled to be part of the new Program 3.0 and to be able to base Losing Clementine production in California,” said Renée Tab, the film’s producer. “We searched other locations, but thanks to the tax credits we can film here at home where the story is set.”
Losing Clementine and five other projects (the Octavia Spencer sci-fi thriller Invasion, Nightfall, Sweetwater, Untitled Jimmy Warden Project and Untitled Jordan Peele Project) plan a significant amount of production outside the Los Angeles 30-Mile Studio Zone. Nearly 40 percent (142 out of 374) of the filming days planned by the projects announced today will occur in Inyo, Kern, Mono, Riverside and San Bernardino counties, as well as other out-of-zone locations yet to be determined.
Bringing production activity beyond the 30-Mile Zone is a key objective for California’s tax credit program. With the projects announced today, more than 45 out-of-zone film and television tax credit projects account for an estimated total of $140 million in qualified out-of-zone spending across the state.
“Program 3.0 is working as intended to ensure we can continue to bring significant filming to regions across the state,” added Bell.
A total of 81 projects applied during the July 13–15 application period for Program 3.0’s inaugural round of feature film tax credits. The California Film Commission has reserved just over $50 million in tax credit allocation for the nine conditionally approved projects. The list of approved projects is subject to change, as applicants may withdraw from the program and their reservation of tax credits is reassigned to one or more projects currently on the waiting list.
The next and final application period this fiscal year for feature film tax credits will be held January 25-27, 2021. The next application period for TV projects will take place September 28-30 (for relocating projects) and October 5-7 (for recurring projects).
Here’s a rundown of the nine conditionally approved projects:
Independent Features
Faster, Cheaper, Better
Dease Pictures, Inc.
Indie greater than $10 million category
Estimated tax credit w/uplifts, if applicable: $2.5 million
Losing Clementine
Pritchard Produtions, LLC
Indie at $10 million or less
Estimated tax credit: $2,294,000
Nightfall
Practical Pictures
Indie at $10 million or less
Estimated tax credit: $2,546,000
Sweetwater
Sweets Partners, LLC
Indie at $10 million or less
Estimated tax credit: $1,436,000
Untitled DOR
New Regency Produtions, Inc.
Indie greater than $10 million
Estimated tax credit $2.5 million
Non-Indie Features
Gray Man
Firefight Productions, LLC
Estimated tax credit: $20 million
Invasion
Big Indie Invasion, Inc.
Estimated tax credit: $2,476,000
Untitled Jimmy Warden Project
Universal City Studios LLC
Estimated tax credit: $7,937,000
Untitled Jordan Peele Project
Universal City Studios LLC
Estimated tax credit: $8,364,000
Features with production outside the L.A. 30-mile zone
Invasion (non-indie)
38 total filming days with 27 outside the zone (San Bernardino, Kern, Inyo, Mono)
Losing Clementine (indie)
33 total filming days with 18 outside the zone (San Bernardino)
Nightfall (indie)
30 total filming days with 25 outside the zone (Riverside, Santa Clarita)
Sweetwater (indie)
30 total filming days with 15 outside the zone (Ventura)
Untitled Jimmy Warden Project (non-indie)
41 total filming days with 26 outside the zone (TBD)
Untitled Jordan Peele Project (non-indie)
50 total filming days with 31 outside the zone (TBD)
