California Proposes Witholding New Tax Credits From Hollywood Productions Unless They “Set Ethnic, Racial, And Gender Diversity Goals And Develop A Plan To Achieve Them”
While it may not be illegal yet, California is taking its first steps to punish Hollywood projects that aren’t woke enough to meet the ever-moving standards of progressives.
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In 2022, California voted to pass SB 485, which revised the state’s film tax credits legislation to introduce a new credit which could only be receive if a given project provided “a diversity workplan that includes goals that are broadly reflective of California’s population.”
According to the 2020 Census, California’s racial demographics are 41% White alone, 6% Black alone, 40% Hispanic, 15%Asian alone, 1.6% American Indian and Alaska Native alone, 0.4% Native Hawaiian and Other Pacific Islander alone, 21.2% Some Other Race alone, and 10.2% individuals whose ethnicity is composed of two or more races.
Under the bill, an appointed commission would be prohibited “from certifying the tax credit for an applicant […] until the commission receives the applicant’s final diversity report.”
Additionally, said commission would be authorized “to increase the applicant’s credit percentage if the commission determines that the applicant has met or made a good faith effort to meet the diversity goals in its diversity workplan.”
While the original bill held no specific penalties for productions that failed to meet these goals, the state’s Democrat governor, Gavin Newsom, is now seeking to provide the state with the tools needed to enforce these new rules.
As per the state’s 2023-2024 Film Tax Credit budget proposal, submitted by the Governor’s office on February 28th, whereas a previous budget packet included a blanket allocation of “$150 million in film tax credits for productions that are filmed at new or renovated soundstages”, this credit is now being withheld unless the given production is instituting “ethnic, racial, and gender diversity goals and to develop a plan to achieve those diversity goals.”
“Productions are eligible to receive an additional 4 percent tax credit if they meet or make a good faith effort to meet their diversity goals,” the Governor’s office added.
Should this proposal be adopted, it will remain in effect throughout the rest of the current Tax Credit’s effective lifespan in 2025 – though lawmakers are currently working on extending this end date to 2030.
California’s new proposal is but the latest example of the ongoing trend of introducing DEI quotas to entertainment.
Last year, British Television giant ITV is set aside £80 million ($105 million) to promote productions companies that promote disability and race-based content.
“ITV is committed to creating content by, with, and for everyone, connecting and reflecting modern audiences,” said ITV Group Diversity and Inclusion Director Ade Rawcliffe “We want more people of color and disabled people to be able to tell their stories and get opportunities in senior production roles.”
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In recent years, The Gay & Lesbian Alliance Against Defamation (GLAAD) has made it a point to produce an annual Studio Responsibility Index which grades the top eight major Hollywood studios based on the quantity, quality, and diversity of the LGBTQ representation in their films.
“I expect every industry executive in this room to join us. GLAAD will give you the playbook,” said GLAAD President and CEO Sarah Kate Ellis at last year’s GLAAD Media Awards.
In the organizations 10th annual report, all seven major film studios failed to receive a passing grade based on the ever-evolving standards of LGBTQ representation.
Sony Pictures, United Artists Releasing, Universal Pictures, and The Walt Disney Studios all received a grade of “Insufficient” while Warner Bros. received a grade of “Poor.” Meanwhile, Lionsgate and Paramount Pictures received the organization’s worst score, “Failing”, due to their films not containing any LGBTQ characters.
Ultimately, woke diversity quotas are not going anywhere in Hollywood.
Despite certain groups now being overrepresented thanks to the recent pushes to make the industry ‘less white’, left-wing politicians are clearly still intent on cementing affirmative action ideologies into law.
NEXT: GLAAD To Grade Film Studios On Political Donations & LGBT Advocacy In Wake Of Disney/Florida Fallout