Revenue and Taxation Code section 17053.98.3
(a)
Notwithstanding Section 17053.98, a qualified motion picture filmed on a soundstage that is, or is part of, a certified studio construction project, leased by a qualified taxpayer on or before September 1, 2026, for the purposes of filming a qualified motion picture, that subsequently became unavailable for filming because that soundstage was the subject of a qualified sublease, is deemed to be filmed at a certified studio construction project for any season the production period overlaps in whole or in part with the term of the qualified sublease if the filming occurs at a qualified alternative soundstage.(b)
For the purposes of this section, the following definitions apply:(1)
“Certified studio construction project” has the same meaning as provided in subparagraph (A) of paragraph (2) of subdivision (k) of Section 17053.98.(2)
“Qualified alternative soundstage” means any soundstage or soundstages in California utilized by a production during the term of a qualified sublease.(3)
“Qualified sublease” means a sublease of a soundstage that is, or is part of, a certified studio construction project to any organization directly associated with, as determined by the California Film Commission, the Los Angeles 2028 Olympic and Paralympic Games, including, but not limited to, LA28, the United States Olympic and Paralympic Committee, and the International Olympic Committee.(c)
A qualified taxpayer or applicant shall submit evidence of a qualified sublease to the California Film Commission. The California Film Commission has sole discretion to determine that a qualified motion picture is considered filmed at a certified studio construction project, for purposes of this section, for any season the production period overlaps in whole or in part with the term of the qualified sublease.(d)
A television series that films subsequent seasons at the qualified alternative soundstage after the term of the qualified sublease shall continue to be deemed to be produced at a certified studio construction project pursuant to this section. However, during the period after the term of the qualified sublease, if the qualified taxpayer or applicant for that television series earns tax credits pursuant to this section for production of the television series produced at the qualified alternative soundstage, then the equivalent number of soundstages at the previously unavailable certified studio construction project may not be treated as part of a certified studio construction project until the television series that films subsequent seasons at the qualified alternative soundstage ceases to claim the benefit of being produced at a qualified alternative soundstage project.(e)
Any soundstages that are, or are part of, a certified studio construction project shall receive an extension of certification equal to the amount of time of the qualified sublease, beyond the five-year certification in subparagraph (A) of paragraph (2) of subdivision (k) of Section 17053.98.(f)
A qualified taxpayer or applicant filming on a qualified alternative soundstage, for purposes of this section, shall comply with all of the requirements of subdivision (k) of Section 17053.98 on the qualified alternative soundstage instead of on a certified studio construction project, as defined in subparagraph (A) of paragraph (2) of subdivision (k) of Section 17053.98.
Source:
Section 17053.98.3, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17053.98.3. (updated Sep. 20, 2026; accessed Sep. 28, 2026).
