Congress Crafts bipartisan 20% federal film tax credit with Trump backing

Members of the House Ways and Means Committee are drafting a federal tax incentive that would provide a 20% credit on all labor expenses for qualifying film, television, reality and animation projects, while excluding news and sports broadcasts. The bill, being shaped by Republicans Nathaniel Moran and Brian Jack and Democrats Linda Sanchez and Laura Friedman, includes four optional uplifts that allow producers to claim additional credits if they meet conditions such as filming in designated rural zones, producing independent content, repatriating overseas shoots, or spending at least $10 million in ten different states within a year; producers may combine up to two uplifts for a maximum credit of 30%.

President Trump publicly supported the idea on Aug. 31, a move that is expected to secure GOP support. The credit would be non-refundable, could be sold to other taxpayers, and would be layered on top of existing state incentives, potentially delivering overall subsidies of 60% or more. The legislation is slated for introduction this month and could be packaged in a tax bill during the lame-duck session, though its final passage may extend into the next year.