Bipartisan Bill Offers 20–30% Tax Credits for U.S. Film Production
A bipartisan group of lawmakers has proposed federal tax breaks to keep film, TV, and streaming production in the United States. The plan would provide a 20% base credit on labor costs, with uplifts that could reach 30%, plus a bonus for Los Angeles County. Supporters say it would counter foreign subsidies and protect American jobs.
The bipartisan plan was shaped with Hollywood unions and the Motion Picture Association to counter incentives from the U.K., Canada, and 63 other nations. Its 20% base credit would cover labor costs for above- and below-the-line workers. Five-point uplifts for rural or independent productions could raise it to 30%, and Los Angeles County would get an extra five-point bonus for five years as a federal disaster area.
Supporters point to job losses: the film and sound-recording sector lost 3,600 jobs in June alone and at least 17,000 in 2025. Labor Department data show entertainment has shed 100,000 positions since 2016. Lawmakers including Nathaniel Moran, Tim Scott, and Adam Schiff say the measure would protect domestic production and cultural influence.
If enacted, the credits could influence where studios choose to film, potentially affecting film crews, vendors, and local economies in states with existing incentives. Los Angeles County might see particular benefit from its bonus, while other regions could compete for rural uplifts. The policy may also shape the types of productions made, though its actual effect would depend on implementation, eligibility rules, and whether foreign subsidies continue to draw work overseas.