Diversity and inclusion initiatives have grown tremendously in the business community over the last 30 years. Unfortunately, the figures show that despite these efforts, diversity in corporate America does not mirror diversity in the general population. In an effort to increase diversity in economic development, some states have started to incorporate diversity and inclusion initiatives into their tax credits and incentives.
As in the business world, diversity and inclusion initiatives for tax credits come in a variety of forms. From credit carve-outs for minority businesses to requiring companies to develop their own diversity and inclusion initiatives, the methods used to promote diversity are endless.
One state making headway with diversity and inclusion initiatives is Illinois. According to the Film Office website, Illinois is the only state to incorporate a diversity standard into their film credit. Several states, including New York and California, are currently entertaining similar proposals. The Illinois Film Services Tax Credit requires companies to make a “good faith” effort to hire minorities and to submit a diversity plan to the Illinois Film Office.
More recently, the Illinois General Assembly amended several economic development credits to incorporate new diversity and inclusion initiatives. These changes are in line with other initiatives in the state.