Lawmakers Push 20-30% Tax Breaks to Boost U.S. Film Industry
Bipartisan lawmakers propose tax incentives to keep film production in the U.S. and counter overseas subsidies.
2 min read
A bipartisan group of lawmakers is pushing for significant tax breaks to help the U.S. film industry remain competitive against overseas production hubs. The proposed legislation aims to enhance existing state-level incentives for film, TV, and streaming productions, ensuring American storytelling stays rooted in the country.
Leveling the Playing Field
The bill, drafted in collaboration with Hollywood unions and the Motion Picture Association, seeks to counter generous subsidies offered by foreign nations like the U.K., Canada, and 63 other countries. Rep. Nathaniel Moran (R-TX) emphasized the need to support American workers, stating, “This isn’t about subsidizing Hollywood — it’s about supporting the American worker, one story and one production at a time.”
Job Losses and Economic Impact
Sen. Tim Scott (R-SC) warned against the loss of American jobs and cultural influence, noting, “We cannot stand by as more and more American film production moves overseas.” According to the U.S. Department of Labor Statistics, the entertainment industry has lost 100,000 jobs since 2016, with 3,600 jobs lost in June alone. The industry is projected to lose at least 17,000 jobs by 2025.
Tax Incentives Breakdown
The proposed legislation includes a 20% base credit for all labor costs, with additional uplifts offering 5% bonuses for filming in rural areas or for independent productions, potentially reaching a maximum of 30% of labor costs. Los Angeles County would also qualify for a 5% bonus for the next five years as a federal disaster area.
Support from Industry Leaders
Joe Chianese, senior vice president for incentives at Entertainment Partners, highlighted the competitiveness of U.S. locations, stating, “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.” Democrat Sen. Adam Schiff echoed the urgency, calling it “the best opportunity in decades to get it done.”
Protecting American Culture
Lawmakers argue that the bill will not only create jobs but also preserve an important source of American cultural influence. By keeping film production within the U.S., the legislation aims to ensure that the next generation of iconic American films is made right here, supporting local economies and communities across the country.
Source: Breitbart
