Lawmakers and Trump Urge Federal Film Tax Credit to Bolster U.S. Production

A coalition of lawmakers from both sides of the aisle, alongside former President Donald Trump, is advocating for the passage of a federal film tax incentive aimed at revitalizing the U.S. film and television industry. The initiative seeks to encourage domestic production, create jobs, and reclaim America's global leadership in visual storytelling.

The push comes as the U.S. share of global production has significantly decreased, falling from a historical benchmark of 65% to just 39%. This decline is attributed to over 120 international jurisdictions offering production incentives, making it more difficult for the U.S. to compete for projects and the associated jobs. The consequence, according to proponents, is a reduction in domestic production, leading to fewer employment opportunities in the entertainment sector.

Supporters of the federal tax incentive argue that it is a crucial step to make domestic shoots cost-competitive. A study suggests that returning the U.S. to its historic 65% share of global production could inject nearly $250 billion into local economies and generate over 143,000 additional jobs annually. Furthermore, research indicates that such a program would make 80% of potential projects viable for production within the United States.

State-level film tax incentive programs have demonstrated success, with studies showing significant returns on investment. For instance, Georgia's film tax credit reportedly yields a 6.3-to-1 return, while Texas sees $4.50 generated for every dollar invested in its incentive program. The argument is that the federal government, which already supports strategic industries like pharmaceuticals and aerospace with targeted incentives, should extend similar support to the film and television sector.

Former President Donald Trump has publicly supported the measure, urging Congress to "approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America." This call for action has been echoed by a bipartisan group of lawmakers who have introduced the Motion Picture, Television, and Entertainment Revitalization Act in both the U.S. Senate and House of Representatives. Notable co-sponsors include Senators Tim Scott (R-S.C.) and Adam Schiff (D-Calif.), as well as Representatives Nathaniel Moran (R-Texas), Linda Sánchez (D-Calif.), Brian Jack (R-Ga.), and Laura Friedman (D-Calif.).

Proponents emphasize that the film and TV industry is a significant economic driver, generating over 2 million jobs nationwide annually and supporting more than 162,000 businesses across all 50 states. The industry contributes over $200 billion in wages to U.S. workers each year and maintains a trade surplus globally. Beyond economic benefits, the industry is seen as integral to American identity and global cultural influence, with foreign audiences exposed to American culture through film and television likely to be more inclined to visit the U.S. and engage with its products and history.