MPTERA Bill Seeks 20% Federal Credit to Reverse Hollywood Exodus

Key points

• The MPTERA bill introduces a 20% transferable federal tax credit on U.S. labor costs for productions with over $1 million in qualifying expenditures and 75% of principal photography in the U.S.
• Bonus credits of up to 5% can raise the total to 30% for filming in rural opportunity zones, disaster areas, or for independent productions spanning multiple states.
• The legislation includes provisions for post-production and visual effects, requiring 75% of costs to be incurred domestically.
• Proponents, including IATSE and the Motion Picture Association, argue the credit will reverse job losses and make the U.S. competitive globally, with a projected $125.3 billion in additional production spending by 2035.
• The bill faces potential opposition from conservatives concerned about federal subsidies and deficit spending, despite broad industry support.

Background

The MPTERA bill follows years of advocacy by unions and industry groups for a federal incentive to counter the exodus of production jobs to countries with more generous subsidies. President Trump's recent endorsement and the introduction of the bill in September 2026 mark a significant step toward addressing the industry's competitive challenges. The proposal builds on existing state incentives, such as California's $750 million annual program, and aims to create a unified federal framework to support domestic production.

How outlets are covering it

Cartoon Brew highlights the inclusion of animation in the federal tax credit proposal, emphasizing its significance for the animation industry. Politico focuses on the bipartisan nature of the legislation and the potential economic impact, noting the support from both Democratic and Republican lawmakers. IATSE underscores the labor-based nature of the credit and its potential to restore jobs for behind-the-scenes workers, urging swift passage. While all sources agree on the bill's importance, they differ in emphasis: Cartoon Brew highlights specific industry benefits, Politico focuses on political dynamics and economic projections, and IATSE stresses the impact on workers.

Why it matters

The MPTERA bill could reshape the U.S. film and TV industry by making domestic production more competitive globally. If passed, it could reverse the trend of job losses to countries with more generous subsidies, support thousands of jobs, and stimulate economic growth in the entertainment sector. The bill's success could also influence future policy discussions on federal incentives for other industries.

What to watch

The MPTERA bill is expected to be debated and potentially passed during the lame-duck session after the November midterms. Industry groups and unions are launching advocacy campaigns to support the bill, while lawmakers will need to address concerns about the cost and necessity of federal subsidies. The outcome of the bill could set a precedent for future federal incentives in the entertainment industry.