President Donald Trump and Sen. Adam Schiff, D-Calif., have found an unlikely area of agreement: the need for federal tax incentives to boost the American film and television industry. Both political figures are advocating for legislation aimed at bringing entertainment jobs back to the United States.
Trump has proposed federal tax incentives to address what he describes as the "complete and total disaster" facing Hollywood, citing job losses and the migration of production to other states and countries. "Congress should approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America," Trump stated on Truth Social. He urged Republican and Democratic leaders in Congress to act swiftly to "craft Legislation to save the Movie, Television, and Entertainment Business in America."
Senator Schiff, a vocal opponent of Trump's, echoed the sentiment, calling for bipartisan cooperation. "I am in strong agreement with the President," Schiff said on X. "Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we've lost to other countries." He added, "Let’s work together — Republicans and Democrats — to get this done, and bring the movie magic back to America."
The entertainment industry has experienced a downturn in recent years, exacerbated by the COVID-19 pandemic and the consolidation of the streaming market. According to the Bureau of Labor Statistics, the industry has shed 49,000 jobs since 2022.
California has been attempting to counter this trend. The state Legislature increased its Film & Television Tax Credit Program to $750 million, but a $5 million state corporate tax credit cap implemented over three years by Gov. Gavin Newsom has been seen as a hindrance. Despite these efforts, California lags behind states like Georgia and New York, which offer more substantial tax breaks, and international destinations such as Canada and the United Kingdom.
Trump believes that federal incentives are crucial, stating, "There is no incentive to be there, and it is hurting California very badly." He suggested that such measures could help restore the industry to unprecedented levels of success.