CA AB1377

Modifies the motion picture tax credit (Film Tax Credit 4.0) for taxable years beginning on or after January 1, 2025, requiring productions to fully meet diversity workplan goals to receive the additional 4% credit bonus, removing the previous "good faith effort" standard

Applies the stricter diversity standard to productions at certified studio construction projects, where meeting workforce and above-the-line diversity goals each earns a 2 percentage point credit increase (up to 4% total)

Removes the requirement for the California Film Commission to evaluate whether productions are making a "good-faith effort" during interim diversity assessments prior to principal photography

Corrects erroneous cross-references in existing motion picture tax credit provisions across multiple Revenue and Taxation Code sections (17053.98, 17053.98.1, 23698, and 23698.1)

Takes effect immediately as a tax levy and requires a two-thirds vote for passage because the changes could result in some taxpayers paying higher taxes by losing the diversity bonus credit