Hollywood coalition and lawmakers propose 20% federal film tax credit

Coalition push and economic projections

Film and television studios, unions, guilds, and industry advocates formed the U.S. Film & TV Production Coalition on Tuesday to lobby for a 20% federal production tax credit. Alongside the launch, the Motion Picture Association released an economic study conducted by consultancy Olsberg SPI evaluating the effects of a transferable tax credit from 2027 to 2035. The modeling assumes the credit applies to productions spending at least $1 million in the United States and can be stacked on top of existing state incentives. The study estimates the policy would generate $249.1 billion in total gross value added across the economy over nine years. It also projects $125.3 billion in additional direct production expenditures and $133.1 billion in additional labor income, supporting an annual average of 143,500 full-time equivalent jobs.

This study tells us that we can bring more opportunities to life for people in all 50 states who bring great stories to life -- the casts and crews, the set builders, construction workers, truck drivers, caterers, and more.

Global market share and baseline losses

The study frames the federal incentive as a mechanism to counter foreign production subsidies. Data from ProdPro cited in the report indicates that the United States accounts for 34% of global film production spending and 42% of television spending. Without federal intervention, the consultancy projects that domestic shares will slide to 25% for film and 29% for television by 2035. Conversely, the model assumes that a 20% credit would allow the domestic sector to capture 65% of global production spending, doubling domestic film and television spend to $34.7 billion by 2032 compared to $16.9 billion without the policy. An internal MPA sample of 20 member-company projects showed that 16 would become financially competitive to produce domestically rather than abroad under the proposed credit.

Legislative backing and industry support

The legislative effort gained traction following an August social media post by President Donald Trump endorsing a national production incentive after meeting with his Hollywood special ambassador, Jon Voight. Bipartisan legislation is expected in Congress between mid-September and the end of the month. Representatives Laura Friedman, a California Democrat, and Brian Jack, a Georgia Republican, joined union leaders from SAG-AFTRA, IATSE, the Directors Guild of America, and the International Brotherhood of Teamsters to present the proposal.

Sixty-five countries have decided it's worth competing for film and television production. The United States hasn't, and too many Americans have lost their jobs because of it.

Structural pressures facing domestic studios

The legislative drive arrives during widespread domestic production contractions and international competition. The number of national, state, and provincial incentives worldwide increased from 86 in 2017 to 121 in 2026, with 65 countries currently offering production programs. At the same time, the domestic entertainment sector faces labor disruption linked to artificial intelligence adoption alongside potential workforce reductions from the proposed merger between Paramount Skydance and Warner Bros. Discovery. Union leadership, including IATSE president Matthew D. Loeb, Teamsters president Sean M. O'Brien, and DGA president Thomas Schlamme, argued that federal tax relief is necessary to preserve middle-class crew employment across all 50 states.