Bipartisan Bill Seeks To Boost Hollywood Production With Federal Tax Credit

LOS ANGELES, CA — A bipartisan group of lawmakers introduced legislation Thursday aimed at boosting Hollywood production by offering federal tax credits for film and television projects made in the United States.

The Motion Picture, Television and Entertainment Revitalization Act would establish a 20% tax credit on labor expenses for American workers on qualifying film and television productions.

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Feature films, television pilots and television seasons costing more than $1 million would qualify if at least 75% of their principal photography days take place in the United States. The legislation also would cover qualifying post-production and visual effects work if at least 75% of those costs are incurred domestically.

Bonus credits could increase the incentive to as much as 30% for productions meeting certain criteria, including independent productions and projects filming at least 30% of their principal photography days in a rural qualified opportunity zone or federally declared disaster area.

Productions spending at least $10 million in qualified wages across 10 or more states also could qualify for an additional credit, as could companies that increase domestic production relative to work done overseas.

The legislation is being led in the House by Reps. Laura Friedman, D- Glendale; Nathaniel Moran, R-Texas; Linda Sánchez, D-Whittier; Brian Jack, R- Georgia; David Kustoff, R-Tennessee; Judy Chu, D-Pasadena; Mike Carey, R-Ohio; and Tom Suozzi, D-New York. Sens. Tim Scott, R-South Carolina, and Adam Schiff, D-California, are leading the Senate effort.

"For over a year, I've worked to build a coalition of unions, studios, Republicans & Democrats, and the White House, because we knew that a national film tax credit would bring hundreds of thousands of jobs back to our country," Friedman said. "This bill is a result of that coalition. It tells every country that has been outbidding us for American work that we are done losing."

The push for a federal incentive gained momentum last month when President Donald Trump expressed support for federal tax incentives for the film industry after meeting with actor Jon Voight, one of his designated Hollywood ambassadors.

Gov. Gavin Newsom, who called on Congress in May 2025 to create a federal incentive for the entertainment industry, voiced support Thursday for the bipartisan legislation.

"California is the entertainment capital of the world. We have the talent, infrastructure, and the creativity to support it -- and we are making historic investments to keep production here. But this is bigger than our state alone," Newsom said. "I support this bipartisan effort to ensure that this industry can compete globally to protect the jobs, businesses and communities that depend on it. In the meantime, we will continue to produce world-leading productions in the Golden State, because when California shines, so does the rest of the nation."

Supporters of the legislation say U.S. film and television productions have increasingly moved overseas to take advantage of incentives offered by countries including the United Kingdom, Ireland and Canada.

The proposed credit would apply to productions beginning in taxable years after Dec. 31, 2026. The credit would be transferable, allowing producers who cannot use the full credit against their federal tax liability to sell it.

"For years, I've been championing a federal film tax credit to stop the exodus of tv and film production leaving the United States for countries offering higher incentives. Now, we have the best opportunity in decades to get it done," Schiff said.

"The direct and indirect jobs created by this creative and talented workforce are enormously important, and we want to make sure they stay in this country. With the support of the White House, our bill will create an overdue federal program to bring the movie magic back to America while creating thousands of jobs and spurring local economic growth across the nation. This legislation has bipartisan, bicameral support, and it's time we get this passed."

The bill is backed by entertainment industry unions, studios and organizations including the Directors Guild of America, International Alliance of Theatrical Stage Employees, Motion Picture Association, Paramount, Producers Guild of America, SAG-AFTRA, Teamsters, Television Academy and the Writers Guilds of America East and West.

An industry-commissioned study cited by supporters projected that a federal incentive would create 143,500 full-time equivalent jobs annually across the country.

The American film and television industry supports more than 2 million jobs and pays $202 billion in wages, according to Friedman's office. The office said more than 100,000 production jobs have disappeared since the industry's peak in October 2022, a decline of roughly 36% through February.

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