A federal film and television tax credit could boost U.S. production spending by $125 billion and add more than 143,000 jobs by 2035, according to a study commissioned by the Motion Picture Assn.
The analysis, released Tuesday morning, is expected to bolster Hollywood’s push for a federal production incentive, which the industry says is necessary to compete with the generous credits offered abroad. Sixty-five nations now offer them, the study said.
A coalition that includes the Motion Picture Assn., industry unions, producers’ groups and small production businesses, along with Democratic and Republican lawmakers, pressed the case at a virtual news conference Tuesday.
“Thousands upon thousands of our people are out of work — out of the work they love — and are struggling to find ways to put food on the table for their families,” said actor Jon Voight, one of President Trump’s Hollywood ambassadors who has played a key role in bringing the issue to the White House. “It’s a very serious situation, and it breaks my heart.”
The effort has been quietly building for more than a year. It got a major boost last month when Trump posted on Truth Social backing a proposed credit, a move he said came after he spoke with Voight.
Details are still being worked out, but the study assumed a transferable credit with a minimum rate of 20% on qualified spending for U.S. resident labor — broadly what industry groups have supported. It also assumed add-ons of 5% for independent production companies and 5% for labor costs in areas the Federal Emergency Management Agency has declared disasters.
“Film and television production doesn’t come with a red or blue label,” Charles Rivkin, chairman and chief executive of the Motion Picture Assn., said during Tuesday’s news conference. “By enacting a federal production incentive, we have the chance to supercharge the next generation of U.S. creativity and strengthen our economy in a lasting way.”
If the incentive took effect Jan. 1, 2027, U.S. production spending would reach $277.5 billion through 2035, the study said, compared with $152.2 billion without it. The study estimated that U.S. film and TV production levels could also climb to 65% by 2035, though without an incentive, TV production could drop to 29%, while film could decrease to 25%.
“The ball is rolling right now because we have seen so much production leave the U.S., and we see what that leaves behind,” Rep. Laura Friedman (D-Glendale) said during the news conference. “We know how to bring these jobs back. It’s not rocket science.”
Friedman and Rep. Brian Jack (R-Ga.) are leading a bipartisan push for the incentive. A bill still needs to be drafted and then will wind its way through the Ways and Means Committee in the House of Representatives.
“We just need to be competitive,” Rivkin said. “We want to get it right, and we want to make sure this bill makes sense. So we’re going to take the time needed to do that, but we want to get it done. We want to get it done quickly.”
