Congress Moves Forward with First Federal Film Tax Credit

Lawmakers on Thursday introduced the Motion Picture, Television, and Entertainment Revitalization Act in the House Ways & Means Committee. The proposal creates a federal tax credit of at least 20 % of qualified labor wages for film and television productions, matching the “above-the-line” talent salaries that are currently excluded in many state programs. Productions that meet additional criteria—such as filming >= 30 % of principal-photography days in a rural qualified opportunity zone or a federally declared disaster area, spending a minimum of $1 million with 75 % of work performed in the United States, and meeting multi-state spending thresholds—could earn an extra 5 % uplift, up to a maximum credit of 30 %. The bill would apply to feature films, TV series, animated projects, and standalone VFX or post-production work, and would stack on top of existing incentives in the 31 states that already offer their own credits.

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The United States film and television sector has seen a steady outflow of productions to countries such as the United Kingdom and Canada, where comparable tax incentives have attracted blockbusters like *Barbie* and *Deadpool & Wolverine*. The pandemic amplified the trend, leaving tens of thousands of industry workers unemployed and prompting a decades-long lobbying effort for a national credit. State subsidies alone have been insufficient to reverse the “exodus,” leading industry leaders to seek a federal solution.

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• Laura Friedman – Democratic Representative from California’s 30th district, co-sponsor of the bill.

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• Nathaniel Moran – Republican Representative from Texas’s 1st district, vocal supporter.

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• Jon Voight – Actor and Hollywood ambassador who helped secure President Trump’s public backing.

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• Sean Astin – President of SAG-AFTRA, involved in coalition-building.

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• House Ways & Means Committee – Primary legislative body advancing the proposal.

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Rep. Friedman emphasized that the coalition behind the bill spans unions, studios, and both parties, arguing the credit would restore “hundreds of thousands of jobs.” Rep. Moran framed the legislation as a level-playing field measure, stating it tells competing countries that the U.S. will no longer lose work. President Trump has publicly endorsed the initiative, and industry insiders express confidence that the bill could be enacted and signed before the end of the year, taking effect for qualifying productions starting in 2027.

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• “For over a year, I’ve worked to build a coalition of unions, studios, Republicans & Democrats, and the White House, because we knew that a national film tax credit would bring hundreds of thousands of jobs back to our country,” — Democratic Rep. Laura Friedman

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