California Film Tax Credit Diversity Initiative Draws Studio Pushback, Though Nonparticipants Keep 96% of Allocation
A diversity initiative run by the California Film Commission is drawing pushback from some major studios, The Hollywood Reporter reported on October 27. The initiative encourages more inclusive hiring on film and television productions and is entirely voluntary: projects that take part can earn a small uplift to their tax credit, while those that do not participate, or that fall short of the goals, still receive 96 percent of their allocation.
Governor Gavin Newsom last year signed legislation raising California's film and television incentive cap from $330 million to $750 million. Over the past eight application windows, 105 of 115 projects chose to take part in the diversity initiative, according to the report.
Studios resisting the initiative argue that its requirements may conflict with federal law and add compliance burdens. Universal has repeatedly considered opting out, the report said, and Skydance and Paramount have had individual cases of nonparticipation. Supporters of the initiative note that participation is optional and that the uplift is an added incentive on top of the base credit.
California's tax credit program is the state's main tool in competing with New York, Georgia and other states for production, and changes to its size and rules directly affect where studios choose to shoot.
Source: GSM · USA (original Chinese edition)
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