US lawmakers unveil bipartisan 20% to 30% federal film and television tax credit bill

Bipartisan legislation introduced in Congress

A bipartisan group of lawmakers introduced the Motion Picture, Television, and Entertainment Revitalization Act on 24 September 2026 to create the first federal tax credit for film and television production. Sponsored in the Senate by Adam Schiff and Tim Scott, and in the House by Nathaniel Moran, Linda Sanchez, Laura Friedman, and Brian Jack, the bill establishes a 20% base credit on labor expenses. Qualifying productions must have a budget of at least $1 million and complete at least 75% of production days or costs within the United States. The measure covers both above-the-line talent and below-the-line crew, including actors, directors, writers, and technical staff. Scott framed the effort as necessary to retain domestic production capacity.

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.

Credit structure and eligibility rules

The proposed federal credit is fully transferable and is designed to stack directly on top of existing state-level incentives in hubs like California, Georgia, and New York. Four distinct 5% bonuses, known as uplifts, can raise the total rebate to a maximum rate of 30% of labor expenditures. These bonuses apply to projects filmed in economically distressed opportunity zones, federally declared disaster areas, productions spread across 10 or more states, and independent productions. Under the disaster provision, Los Angeles County qualifies through January 2030 due to the 2025 Pacific Palisades and Eaton wildfires. The legislation also provides credits for domestic visual effects and postproduction, while explicitly excluding news broadcasts, live sporting events, talk shows, daytime soap operas, commercials, and social media content.

Industry employment losses and economic forecasts

The legislative push responds to sustained domestic job losses caused by international competition from jurisdictions like Canada, the United Kingdom, and Australia. Data from the US Bureau of Labor Statistics shows that employment in the motion picture and video industries dropped by more than 100,000 jobs between 2022 and 2026, while Los Angeles County lost over 42,000 entertainment jobs between 2022 and 2024. A study commissioned by the Motion Picture Association estimates that the incentive could double the current $20 billion domestic production sector by 2032. The study also projects $125.3 billion in cumulative new production spending and $133.1 billion in labor earnings between 2027 and 2035, while sustaining an average of 143,500 jobs annually.

Lame-duck legislative strategy

Supporters are seeking to pass the legislation during the post-election lame-duck session before the end of 2026. The effort gained traction following an endorsement from Donald Trump in August 2026, alongside cross-party discussions that engaged figures such as reality television personality Spencer Pratt and actor Jon Voight. With both the House and Senate entering recess ahead of the November midterms, lawmakers plan to attach the credit to a broader year-end tax or funding package. Lawmakers and staff are currently working on securing an official cost score and identifying potential revenue offsets.

Windows of opportunity to pass legislation open and close very quickly. You have to really strike while the iron is hot.