The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including credits to a qualified taxpayer in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in California (film credits) . Existing law provides additional credits, among other credits, for the production of a qualified motion picture in California, as specified, that is in its 2nd or subsequent years of receiving a tax credit allocation, in an aggregate amount not to exceed 5% of the qualified expenditures of that motion picture relating to original photography outside of the Los Angeles zone, as defined. Existing law also provides additional credits, among other additional credits, for the production of those same qualified motion pictures in an amount equal to 10% of qualified wages paid for services performed relating to original photography outside of the Los Angeles zone to qualified individuals who reside in the state but outside the Los Angeles zone.
Existing law requires the California Film Commission to establish a procedure for applicants to file a written application for allocation of the credits that includes, among other things, a summary of the applicant's voluntary programs to increase the representation of minorities and women in specified job classifications. Existing law also requires the California Film Commission to implement a pilot Career Pathways Training program to fund technical skills training to individuals from underserved communities for entry into film and television industry jobs.
This bill would require an applicant to include in the credit application a workforce development plan summarizing the applicant's voluntary programs to increase the representation of individuals from underserved communities instead of the summary of programs to increase representation of minorities and women. The bill would authorize additional credit amounts for the production of a qualified motion picture in an amount equal to 20% of the qualified wages paid to qualified individuals who are graduates of the Career Pathways Training program, or an equivalent program, if specified conditions are met, including that the motion picture has filed a workforce development plan with, and approved by, the California Film Commission.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.

Statutes affected:
SB611: 17206 RTC
02/18/21 - Introduced: 17206 RTC
03/10/21 - Amended Senate: 17053.98 RTC, 23698 RTC, 17206 RTC
04/29/21 - Amended Senate: 17053.98 RTC, 23698 RTC
05/11/21 - Amended Senate: 17053.98 RTC, 23698 RTC
SB 611: 17206 RTC