Section 5525 - Approved Applicant Responsibility-Phase III(a) An applicant issued a credit allocation letter shall be required to comply with the following during the production period: (1) On the first day of principal photography and after a hiatus period, if applicable, submit by email to the CFC the daily call sheet, signed by the production manager or equivalent position, in PDF or equivalent format.(2) Each week or as available, submit by email to the CFC the final production reports for each day of principal photography, signed by the Unit Production Manager or equivalent position, in PDF or equivalent format.(3) If applicable, submit an email notification to the CFC indicating any significant changes to the project including anticipated changes in the estimated qualified expenditures, change of start date, shooting location, number of television episodes ordered, title change of project, financing, key personnel or any other factors that have significantly changed since issuance of the CAL.(4) Participation in career-based learning and training programs and public service opportunities approved by the CFC in consultation with the California Department of Education (CDE) and/or California Community College Chancellor's Office (CCCCO) aimed at exposing career-based learning program, high school, community college, and California State University students to jobs in the entertainment industry. To demonstrate compliance with this requirement the applicant must submit the applicable form for Career Readiness verification, Form CR1, CR2, CR3, CR4, or CR5 (July 28, 2023), hereby incorporated by reference, to the CFC as soon as the career-based learning and training program or public service opportunity has concluded. To meet the requirements of this section, the applicant may do any of the following:(A) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program three (3) paid internship positions for a minimum of one hundred (100) hours each or a combination of internships or internship with a minimum of one hundred (100) hours per student and three hundred (300) hours in total. Interns must be 18 years of age or older. Internship experience must include working with professionals in the film industry and hands-on work assignments; or(B) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program classroom workshops, panels, or demonstrations on aspects of the film industry, which may include but is not limited to set operations, post-production and specific technical crafts conducted by entertainment industry professionals; or(C) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program a minimum of eight (8) hours of professional skills tours, which may include visits to observe set operations, set construction, wardrobe department, art department and editorial department; or(D) Provide a minimum of eight (8) hours of continuing education for educators and/or faculty to observe the set operations, post-production, and other specialized departments in the film industry; or(E) Make a financial contribution to a specific local or state educational agency or higher education institution specializing in arts, media, and entertainment career oriented programs. The contribution shall be based on 0.25 percent of the estimated tax credit reservation with a minimum financial contribution of $5,000 and a maximum required financial contribution of $12,000. (Note: An applicant may contribute an amount in excess of the maximum); or(F) Provide a learning opportunity or financial contribution of equal time or value through other arts, media, and entertainment programs, workforce programs, etc. which are not affiliated with CCCCO or CDE and is approved by the CFC.(5) Make a financial contribution to fund a pilot career pathways training program to a non-profit fiscal agent as determined by CFC. (A) The contribution shall be based on 0.25 percent of the estimated tax credit reservation as stated on the CAL.(B) The contribution shall be submitted to the CFC with the career pathways program form, Form CPP (New. July 28, 2023), hereby incorporated by reference, no later than thirty (30) business days after the CAL date; failure to submit the contribution within this time frame will result in revocation of the CAL. 1. An applicant facing a technical or funds-related barrier to meeting the deadline may request an extension of up to ten (10) business days and the CFC will grant the extension if the applicant requests such an extension prior to the expiration of the timeframe specified in subparagraph (B) above and provides supporting documentation.(C) The contribution is refundable if the project does not receive a tax credit certificate. A portion may also be refundable if the tax credit amount is significantly reduced due to reasonable cause as per Section 5520(y).(D) A qualified motion picture that receives an increase in allocated tax credits, causing an additional contribution sum to become due, shall make a payment of that additional sum within thirty (30) business days of notification of that increase in allocation.(E) The contribution must be made by business or personal check. No other payment options will be accepted.Cal. Code Regs. Tit. 10, § 5525
Note: Authority cited: Sections 17053.98(e) and 23698(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95, 17053.98, 23695 and 23698, Revenue and Taxation Code; and Section 14998.1, Government Code.
Note: Authority cited: Sections 17053.98(e) and 23698(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.98 and 23698, Revenue and Taxation Code; and Section 14998.1, Government Code.
1. New section filed 7-1-2020; operative 7-1-2020 pursuant to Government Code section 11343.4(b)(3)(Register 2020, No. 27).
2. Amendment of subsection (a)(5)(B) filed 2-10-2022; operative 2/10/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 6).
3. Amendment of subsections (a)(4)-(a)(4)(C) and (a)(5)(B), new subsection (a)(5)(B)1., amendment of subsection (a)(5)(C), new subsections (a)(5)(D)-(E) and amendment of NOTE filed 12-22-2023; operative 12/22/2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 51).