By Dominique Ulloa and Lori Condinus, Special to California Black Media
As industry insiders, advocates for change, and social justice activists, we are joining forces in this Op-Ed to shed light on the critical need to strengthen California’s Film Tax Credit program through community and stakeholder participation and oversight.
Thankfully, Sen. Lola Smallwood-Cuevas (D-Los Angeles) and Assemblymember Tina McKinnor (D-Hawthorne) have been spearheading this effort in the Legislature, calling for a Film Tax program that reflects the diverse landscape of the California workforce.
The motion picture industry is grappling with a multitude of challenges, including strikes, COVID-19 disruptions, and fierce competition from other states offering enticing tax incentives.
To address these issues and support the ever-evolving industry, California plans to extend the $1.2 billion film tax credit for another five years. While we applaud the commitment of Gov. Gavin Newsom and the Legislature to retain jobs in our state, it is essential that we seize this opportunity to bring about real change for disadvantaged and underrepresented workers.
We can’t afford to settle for mere job retention or isolated success stories from underrepresented workers; this moment calls for us to strive for true accountability and inclusivity within the industry.
Looking to the future, the very essence of Hollywood as we know it may be at stake. Other states, including Texas, Georgia, Louisiana, New Jersey, and Missouri, have embraced film tax credit legislation, luring productions away from California.
According to McKinsey & Company’s 2021 Study on Black representation in film and TV, addressing persistent racial inequities could unlock an additional $10 billion in annual revenues for the industry. This presents an incredible opportunity for California to not only lead by example in equitable representation, but also bolster our economy and help shield ourselves from recession.
Throughout history, the motion picture industry has lacked the necessary mechanisms to ensure diversity, equity, inclusion and accessibility in hiring practices. Version 4.0 of the California Film Tax Credit presents us with a fresh chance to make significant headway in this regard.
Previously, the industry operated mostly within the private sector, making it difficult for the state to evaluate compliance, progress, and enforce reporting requirements as it does with public sector jobs.
Under Version 3.0 of the California Film Tax Credit, the implementation of a Diversity Requirement aimed to increase employment opportunities for underrepresented workers. Unfortunately, this program fell short due to its lack of meaningful reporting requirements, community and stakeholder participation, and institutional support.
