Lawmakers, Hollywood unions push federal film tax credit before year's end
California lawmakers and Hollywood unions rallied Tuesday for a federal tax credit of 20% to 30% on U.S. labor for films and TV shows. Sen. Adam Schiff said 12 senators, six from each party, back the bill. Supporters want it passed in the lame-duck session to stop jobs from moving overseas.
Hollywood workers want Washington to help bring film and TV jobs back home. On Tuesday, Sen. Adam Schiff and eight members of Congress from Southern California rallied with union leaders outside the Alex Theatre in Glendale, California, to push for a federal tax credit for productions made in the U.S.
The bill is called the Motion Picture, Television and Entertainment Revitalization Act. It would give a 20% tax credit on labor costs for American workers on films, TV pilots and TV seasons that cost more than $1 million. At least 75% of filming days would need to take place in the U.S. Bonuses could raise the credit to 30%, including for independent films and for shoots in rural areas or disaster zones. Producers could sell credits they can't use.
"We are so close to getting this done," Schiff said, according to Variety. He said 12 senators back the bill, six Democrats and six Republicans.
Supporters say the U.S. is losing work to 65 other countries that offer incentives, including Britain, Ireland and Canada. A union report found the U.S. share of global film production spending fell from 74% to 42% over 25 years, Variety reported. Rep. Laura Friedman's office said more than 100,000 production jobs have disappeared since the industry's peak in October 2022.
The timing is tight. Lawmakers will have about five weeks after the November election to pass it. Friedman said she wants it on the president's desk by mid-December, likely as part of a bigger tax package. President Trump called on Congress in August to pass an incentive "immediately," Variety noted.
The studios' trade group, the Motion Picture Association, supports the idea but has said it is important to "get this right." Union leaders said their members can't wait.
What we know: The bill has bipartisan Senate backing and a lame-duck target.
What we don't: Whether it makes it into a year-end tax deal, and what it would cost.
Where outlets agree Variety and MyNewsLA both report that Schiff, Friedman and union leaders rallied in Glendale on Tuesday for a 20% labor tax credit that bonuses could raise to 30%.
Where they differ Unions say the credit cannot wait past the lame-duck session, while the Motion Picture Association has urged lawmakers to take care to "get this right."