Bipartisan Lawmakers Introduce 20% Federal Film Tax Credit to Counter Global Incentives

Key points

• The Motion Picture, Television and Entertainment Revitalization Act proposes a 20% federal tax credit on U.S. labor costs for film and TV productions, including post-production and visual effects.
• The credit can increase to 30% with bonuses for independent productions, filming in rural opportunity zones or federally declared disaster areas, and productions spanning 10 or more states with at least $10 million in qualified compensation.
• Eligible productions must have a total cost exceeding $1 million and 75% of principal photography days in the U.S., excluding news, live sports, talk shows, and advertising.
• The bill is co-sponsored by Senators Tim Scott (R-S.C.) and Adam Schiff (D-Calif.), and Representatives Nathaniel Moran (R-Texas), Linda Sánchez (D-Calif.), Brian Jack (R-Ga.), and Laura Friedman (D-Calif.).
• President Trump endorsed the measure after meeting with actor Jon Voight, his Hollywood ambassador, and the White House is in close contact with lawmakers on the legislation.
• The Motion Picture Association projects the credit could add $125 billion in U.S. production spending and 143,000 jobs by 2035, while IATSE and other unions urge swift passage to address job losses.

Background

The U.S. has never offered a federal film tax credit, while at least 65 nations provide such incentives, leading to a significant exodus of production jobs. California, which lost over 42,000 film and TV jobs between 2022 and 2024, recently expanded its state incentives to $750 million annually and passed a standalone post-production tax credit. President Trump publicly supported a federal credit in August 2026, and Jon Voight, appointed as his Hollywood ambassador, has been coordinating with unions and lawmakers to build momentum for the bill.

How outlets are covering it

The Los Angeles Times and Deadline emphasize the bipartisan support and the potential for the credit to reverse the exodus of production jobs, highlighting endorsements from major unions like IATSE and SAG-AFTRA. Politico notes the political complexity, including potential resistance from conservatives wary of new tax breaks, but underscores the broad support from industry groups and the White House. IATSE frames the bill as a critical jobs measure for its 170,000 members, urging swift passage to address years of job scarcity. The Motion Picture Association projects significant economic benefits, while critics, including some Republicans, question the cost and necessity of federal subsidies. The Wall Street Journal has editorialized against the credit, calling it a 'handout' to Hollywood.

Why it matters

The federal film tax credit could reshape the U.S. entertainment industry by making it competitive with global incentives, potentially reversing the loss of production jobs and boosting economic activity in states like California, Georgia, and New York. Passage of the bill could also influence state-level incentives and the broader political landscape, as it represents a rare bipartisan effort to support a major industry. The credit's success could determine whether the U.S. can retain its status as a global hub for film and TV production.

What to watch

Lawmakers aim to pass the bill during the lame-duck session after the November 3 midterms, possibly by attaching it to a major funding bill. The White House is in close contact with lawmakers on the legislation, and there are no reported 'red flags' from the administration. Industry groups and unions are launching advocacy campaigns to push for passage before year-end, while critics continue to debate the cost and necessity of the credit.