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Committee advances DEIA compliance changes for film tax credits; AB 1377 passes out of committee
Summary
AB 1377 would require studios that opt into optional diversity, equity, inclusion and accessibility (DEIA) tax credits for film and television to complete the DEIA plans they submit to the California Film Commission. The Revenue and Taxation Committee voted the bill out to Appropriations (final committee vote 5–1).
Assemblymember McKenna sponsored AB 1377, which would tighten eligibility for optional DEIA tax credits in the state's film and television tax credit program by requiring studios that opt into those incentives to complete the DEIA plans they propose to the California Film Commission.
In introducing the bill, McKenna said current law allows studios to receive the extra credit by demonstrating a “good faith effort” without completing the plans; AB 1377 would require studios to carry out the plans they submit. Yvonne Fernandez of the California Labor Federation spoke in support, and no primary opposition witnesses registered in the hearing.
Committee action: A motion to pass AB 1377 as amended to Appropriations was made (mover: Carrillo; seconder: Quirk Silva). The committee recorded a final vote of five in favor and one opposed; the bill passed out of the Revenue and Taxation Committee and will next be considered by the Appropriations Committee.
Why it matters: The measure links tax incentives to demonstrable workplace and access commitments in the film and television industry, a sector that uses state tax credits to compete for production. Supporters said the change is straightforward: if studios want the extra credit for DEIA commitments, they must complete the DEIA plans they certify.
What’s next: AB 1377 advances to Appropriations for fiscal review and scheduling; further amendments are possible there.
