Bipartisan Bill Proposes 20%-30% Federal Tax Credit to Revive U.S. Film Production
Lawmakers introduced a bipartisan bill that would add a 20%-30% federal tax credit on film labor costs, stacking with state credits to make U.S. production the most subsidized worldwide.
A bipartisan group of legislators unveiled federal legislation that would create a 20% to 30% tax credit for film and TV labor costs, designed to stack on top of existing state incentives and become the world’s most generous subsidy package. The bill, the result of a two-year effort by Hollywood unions and the Motion Picture Association, seeks to address a production decline that has cost more than 50,000 jobs in Los Angeles over the past four years.
The base credit would apply to both below-the-line and above-the-line labor, with extra 5% uplifts for rural locations, independent productions, and a five-year disaster-area bonus for Los Angeles County. Lawmakers such as Rep. Nathaniel Moran and Sen. Tim Scott argue the incentive will keep American storytelling domestic and generate thousands of new jobs, while Sen. Adam Schiff sees it as a long-awaited solution to the overseas exodus of productions. Critics note that several states already offer comparable credits and that foreign jurisdictions like Manitoba may still retain a competitive edge.
Why it matters
The bill could reshape where movies and TV shows are filmed, affecting thousands of American jobs and the cultural influence of U.S. entertainment.
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