Full Breakdown
Congress Proposes Expanded Film Tax Credits to Keep Production in the United States
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Proposed Federal Film Tax Incentive Bill
A bipartisan group of House and Senate members is drafting legislation that would add a federal tax credit to the existing state incentives for film, television and streaming productions. The bill is being coordinated with Hollywood unions and the Motion Picture Association in an effort to counteract the “generous subsidies” offered by foreign governments.
Industry Decline and Foreign Competition
Industry analysts note that the U.S. entertainment sector has shed thousands of jobs in recent years. The Department of Labor reports a loss of 3,600 jobs in June alone, 17,000 jobs in 2025, and a cumulative loss of roughly 100,000 positions since 2016. Lawmakers argue that foreign subsidies from the United Kingdom, Canada and more than 60 other nations are drawing productions—and the associated employment—away from the United States.
Bill Details
The proposal would provide a 20 % base credit on all labor costs, covering both below-the-line and above-the-line personnel. Additional “uplifts” would add 5 % bonuses for filming in rural locations, for independent projects, and for productions in Los Angeles County, which would qualify for a five-year disaster-area bonus. Combined, the maximum credit could reach 30 % of labor expenses.
Official Statements & Responses
Rep. Nathaniel Moran (R-TX) said the legislation is intended to “level the playing field” for American storytelling. Sen. Tim Scott (R-SC) warned that continued overseas migration of productions threatens jobs, investment and cultural influence. Democratic Sen. Joe Chianese, senior vice president for incentives at Entertainment Partners, argued that the bill would make U.S. locations the most competitive globally.
Verbatim Quotes
- “If it passes and it stacks clean, shooting in Georgia or California or New York is the best deal on the planet. Nothing overseas comes close,” — Joe Chianese, senior vice president for incentives at Entertainment Partners
- “If we want to keep American storytelling in America, we have to level the playing field, and that’s exactly what this bill does,” — Rep. Nathaniel Moran
- “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,” — Sen. Tim Scott