Hollywood Heads to Capitol Hill as Bipartisan Federal Film Tax Credit Bill Is Introduced: The long-running push for a federal film and television production incentive has entered a new phase with the introduction of the Motion Picture, Television, and Entertainment Revitalization Act, bipartisan legislation designed to encourage more entertainment production in the United States.
The legislation was introduced on September 24 by Sen. Tim Scott (R-S.C.) in the Senate, with Sen. Adam Schiff (D-Calif.), Sen. John Cornyn (R-Texas) and Sen. Raphael Warnock (D-Ga.) joining as sponsors. In the House, Rep. Nathaniel Moran (R-Texas) introduced companion legislation with a bipartisan group of lawmakers.
The proposal follows President Donald Trump’s call for Congress to establish a federal film and television production incentive. Trump has argued that federal action is needed to address the movement of American productions to countries offering substantial production incentives. Actor Jon Voight, who has been involved in the administration’s Hollywood outreach, has also backed the legislation.
A Federal Incentive for American Production
The proposed legislation would establish what sponsors describe as the nation’s first federal tax incentive specifically aimed at film and television production.
At its core, the bill would provide a 20% federal, labor-based tax credit for qualifying U.S. productions. The incentive would be available for qualifying feature films, television pilots and television seasons with production costs exceeding $1 million, provided at least 75% of principal photography days take place in the United States.
The credit could increase to a maximum of 30% through specified bonus provisions. These include qualifying production in rural opportunity zones or federally declared disaster areas, independent productions, certain multi-state productions and projects that demonstrate increased domestic production.
Post-Production and Visual Effects Included
The legislation also addresses the increasingly international nature of post-production and visual effects.
Qualifying traditional post-production and visual-effects work could receive a 20% base credit when at least 75% of the applicable work or costs take place in the United States.
The inclusion of VFX and post-production is significant because these parts of the filmmaking process can also be performed across international markets offering production incentives.
The bill would allow the federal incentive to supplement existing state film and television tax credits, rather than replacing state programs.
Bipartisan and Bicameral Support
The proposal has attracted support from lawmakers representing several major production states, including California, Georgia, New York and Texas.
The House sponsors include Linda Sánchez (D-Calif.), Brian Jack (R-Ga.), Laura Friedman (D-Calif.), David Kustoff (R-Tenn.), Judy Chu (D-Calif.), Mike Carey (R-Ohio) and Tom Suozzi (D-N.Y.), in addition to Moran.
The legislation has also received backing from a broad range of entertainment organizations and labor groups, including the Directors Guild of America, IATSE, Motion Picture Association, Producers Guild of America, SAG-AFTRA, Television Academy and Writers Guilds of America East and West.
Why Runaway Production Is a Central Issue
Supporters say foreign production incentives have made international locations increasingly competitive for American film and television projects.
The Directors Guild of America has argued that productions moving overseas can reduce employment opportunities for U.S. entertainment workers and economic activity for businesses that depend on production.
The Motion Picture Association has projected that the proposed legislation could generate substantial economic activity and employment, although those figures represent industry estimates rather than guaranteed outcomes.
California Gov. Gavin Newsom has also welcomed the federal proposal, noting that California has expanded its own Film and Television Tax Credit Program and arguing that a federal incentive could complement state programs.
Not Every Production Would Qualify
The proposed incentive includes eligibility requirements and exclusions.
According to descriptions of the legislation, qualifying productions must meet the spending and domestic-photography thresholds. The bill excludes categories including news programming, live sports, talk shows, advertising and corporate videos, as well as certain other forms of programming.
The legislation therefore represents a targeted production incentive rather than a blanket tax credit for all entertainment-related activity.
The Road Ahead
The bill is now before Congress and would need to pass both chambers before reaching the president. Its introduction represents a significant legislative step, but passage is not assured.
The debate is likely to focus on the cost of federal tax incentives, the effect on domestic employment and local economies, the competitiveness of U.S. production against international markets, and whether federal incentives should supplement the numerous state-level programs already operating across the country.
For Hollywood, however, the legislation marks a notable development: the industry’s long-standing campaign for a national production incentive has moved from advocacy into formal congressional legislation, with bipartisan sponsors in both chambers and support from major entertainment unions, guilds and industry organizations.
