California Film Tax Incentive Credit and Diversity Benchmarks

 

Only 4% of jobs created by Film Tax Credit go to African Americans; 29% to women

 

California lawmakers conducted a hearing to explore the option of modifying the California film tax incentive credit to include diversity benchmarks. Of the below-the-line jobs created in the first phase of the California film tax incentive credit, only 4% of those jobs went to African-Americans and 29% to women. California held the hearing to better understand the economic impacts of the current credit and how it can better serve all California taxpayers.

The hearing was attended by the Motion Picture Association of America and many of the major film industry guilds and unions. Statistics from the second phase of the California film tax incentive credit, which was implemented in July 2015, are not yet available. The second phase of the film tax credit program introduced uplifts for visual effects work done in California and for filming done outside of the Los Angeles zone.

KPM’s Take

The implementation of diversity benchmark would help spread the economic impact of the credit. White workers received 65% of the below-the-line jobs created by the first phase of the California film tax incentive. The diversity benchmarks could be an important aspect of the next phase of the California film tax incentive program. It could greatly help the underrepresented California film workers and California film industry as a whole.