California To Punish Productions That Fail Diversity Goals

They will lose 4% of their tax credit allocation.

 

Under a proposal from the California governor’s office, entertainment productions that fail to meet their diversity goals will lose 4% of their tax credit allocation. The provision – writes Variety – is part of a five-year extension of the state’s $330 million tax credit. Productions that receive the credit will be required to submit a diversity “work plan,” under which they must commit to hiring a crew that is “broadly reflective” of the state’s demographics. If they fail to meet their hiring goals or fail to submit a plan, the California Film Commission will deduct 4% from their tax incentive.

“California has had an incentive program for film production since 2009. It was originally intended to fight “runaway production,” as other states were luring jobs away with their own incentives. But in the last two years, lawmakers have also begun to see the program as leverage to diversify the entertainment industry, which is much whiter than the state population.” writes Variety writer Gene Maddaus.

Under the proposed bill, productions must adopt a plan to make their workforce reflect the state’s population in terms of “race, ethnicity, disability status, and gender.” In the earlier versions of the law, disability status was not included, which led to pushback from disability advocates.

 

Source: Variety

Published On: March 14, 2023Categories: NewsTags:

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Netflix Has a Target: Young Adults
A Booming Year For Universal Music
They will lose 4% of their tax credit allocation.

 

Under a proposal from the California governor’s office, entertainment productions that fail to meet their diversity goals will lose 4% of their tax credit allocation. The provision – writes Variety – is part of a five-year extension of the state’s $330 million tax credit. Productions that receive the credit will be required to submit a diversity “work plan,” under which they must commit to hiring a crew that is “broadly reflective” of the state’s demographics. If they fail to meet their hiring goals or fail to submit a plan, the California Film Commission will deduct 4% from their tax incentive.

“California has had an incentive program for film production since 2009. It was originally intended to fight “runaway production,” as other states were luring jobs away with their own incentives. But in the last two years, lawmakers have also begun to see the program as leverage to diversify the entertainment industry, which is much whiter than the state population.” writes Variety writer Gene Maddaus.

Under the proposed bill, productions must adopt a plan to make their workforce reflect the state’s population in terms of “race, ethnicity, disability status, and gender.” In the earlier versions of the law, disability status was not included, which led to pushback from disability advocates.

 

Source: Variety

Published On: March 14, 2023Categories: NewsTags:

Share:

Netflix Has a Target: Young Adults
A Booming Year For Universal Music