A bipartisan group of congressmen are proposing big tax breaks to help America stay competitive in the film industry.
The proposal would add even more incentives to the many state tax breaks already in place for film, TV, and streaming productions, according to Variety.
“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,” said Joe Chianese, senior vice president for incentives at Entertainment Partners.
The proposed legislation was crafted in cooperation with Hollywood unions and the Motion Picture Association in an effort to undercut the generous subsidies being ladled onto the entertainment industry by foreign countries such as the U.K., Canada, and 63 other nations.
“If we want to keep American storytelling in America, we have to level the playing field, and that’s exactly what this bill does,” said Rep. Nathaniel Moran, (R-TX). “This isn’t about subsidizing Hollywood — it’s about supporting the American worker, one story and one production at a time.”
“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,” added Sen. Tim Scott, (R-SC). “This legislation will create jobs in communities across America, support local economies, and help ensure that the next generation of iconic American films is made right here in America.”
Democrat Calif. Sen. Adam Schiff also worried over the loss of American jobs and insisted, “Now, we have the best opportunity in decades to get it done.”
“The 20% base credit would apply to all labor costs, both below-the-line and above-the-line. A series of “uplifts” would grant 5% bonuses for filming in rural areas or for independent productions, bringing the potential maximum to 30% of labor costs. Los Angeles County would also qualify for a 5% bonus for the next five years as a federal disaster area,” Variety explained.
It has already been reported that the film and sound recording industry lost another 3,600 jobs in June alone. And in 2025, the industry lost at least 17,000 jobs.
By the reckoning of the U.S. Department of Labor Statistics, the entertainment industry lost 100,000 jobs since 2016.
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