Lawmakers Unveil Federal Incentives to Lure Film Productions Back to US

Lawmakers worked together to introduce a bill Sept. 24 aimed at bringing film production back to the United States by establishing a 20 percent base tax credit for movies, television, and visual effects projects.

The Motion Picture, Television, and Entertainment Revitalization Act was introduced in the U.S. Senate and House after President Donald Trump’s call for Congress to establish a federal incentive to compete with international production markets.

“We cannot stand by as more and more American film production moves overseas, taking jobs, investment, and an important source of American cultural influence with it,” said bill co-sponsor Sen. Tim Scott (R-S.C.) said in a statement. “This legislation will create jobs in communities across America, support local economies, and help ensure that the next generation of iconic American films is made right here in America.”

The legislation would provide optional 5 percent bonus credits that could be stacked on the 20 percent base credit, with the total credit capped at 30 percent.

Productions could earn the bonus credits by producing projects in rural opportunity zones or in federally declared disaster zones, filming multi-state productions, creating a production by an independent producer, and if film companies increase their number of domestic productions relative to their previous foreign investment.

The tax credit would exclude live sporting events, sexually explicit material, marketing, daytime drama shows, award event programming, social media posts, and other non-legacy media productions.

The bill was sponsored by Sens. Scott, Adam Schiff (D-Calif.), John Cornyn (R-Texas), and Reverend Raphael Warnock (D-Ga.); and Reps. Nathaniel Moran (R-Texas) and Linda Sánchez (D-Calif.).

“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,” said Schiff, who has a residence in Burbank, California, home to Disney and Warner Bros. studios.

“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,” Schiff said.

The legislation drew overwhelming support from the industry Thursday.

The Motion Picture Association (MPA), International Alliance of Theatrical State Employees, Screen Actors Guild—American Federation of Television and Radio Artists (SAG-AFTRA), and the Teamsters endorsed or expressed support for the incentives in statements posted on social media.

The MPA called the legislation a “game changer for American creators, workers, and businesses.”

“Passing this legislation could inject $250 billion into the country’s economy and deliver nearly 145,000 new jobs every year across all 50 states,” the MPA said in a statement. “That’s a story we can write together by enacting this bill, to ensure that more stories are crafted, created, and made here in America.”

“We will be fighting hard to get this bill through, and members will have a key role to play in advocating its passage with their representatives,” Crabtree-Ireland said in a post. “My appreciation goes out to all the members of Congress leading this effort.”

Paramount Skydance Chairman and CEO David Ellison also said he fully supported the bill.

“We believe now is the time to pursue this important legislation, so we can support our critical production workers and make more films and TV right here at home,” Ellison said in a statement. “Paramount will continue working closely with our union partners and the broader creative industry at every level to help support the effort.”