Bipartisan lawmakers introduce federal film tax incentive legislation with 20-30% credit

Bipartisan U.S. lawmakers officially introduced the Motion Picture, Television, and Entertainment Revitalization Act on September 24, 2026. The bill proposes a 20% federal tax credit on domestic labor costs, rising up to 30% with specific bonus uplifts, to combat runaway production to foreign markets. Supported by President Donald Trump, Hollywood unions, and industry groups like the Motion Picture Association, the incentive is projected to add over 143,000 jobs annually and stack on top of existing state-level programs.

Federal introduction and political backing

• ▪Bipartisan lawmakers in the U.S. Senate and House of Representatives officially introduced the Motion Picture, Television, and Entertainment Revitalization Act on September 24, 2026.
• ▪President Donald Trump publicly backed the federal film tax incentive, the Motion Picture, Television, and Entertainment Revitalization Act, after discussions with actor and appointed Hollywood ambassador Jon Voight

Proposed tax credit specifications

• ▪The proposed Motion Picture, Television, and Entertainment Revitalization Act establishes a 20% base federal tax credit on U.S. labor costs for eligible film, television, and visual effects productions
• ▪The Motion Picture, Television, and Entertainment Revitalization Act's tax credit excludes live sports, daytime dramas, talk shows, news, award programming, social media content, and advertising
• ▪The Motion Picture, Television, and Entertainment Revitalization Act's base credit can increase up to 30% through 5% bonus uplifts for independent productions, multi-state filming, or shooting in rural opportunity zones and federally declared disaster areas
• ▪To qualify for the Motion Picture, Television, and Entertainment Revitalization Act's credit, productions must cost over $1 million and conduct at least 75% of principal photography days within the United States

Entertainment industry endorsements

• ▪SAG-AFTRA President Sean Astin expressed optimism that the bipartisan Motion Picture, Television and Entertainment Revitalization Act would finally establish a federal tax incentive to make the U.S. film industry globally competitive
• ▪Motion Picture Association CEO Charles Rivkin endorsed the Motion Picture, Television, and Entertainment Revitalization Act, calling the proposed federal incentive a true game changer for American creators, workers, and businesses
• ▪The International Alliance of Theatrical Stage Employees supported the Motion Picture, Television, and Entertainment Revitalization Act, stating it would be transformative for members' future work opportunities after years of scarcity
• ▪Paramount Skydance Chairman and CEO David Ellison expressed full support for the Motion Picture, Television, and Entertainment Revitalization Act to protect production workers and increase domestic filming

State-level film incentives

• ▪The proposed federal tax credit is designed to stack on top of existing state film incentives, which are currently offered by 39 U.S. states.
• ▪U.S. states have distributed over $25 billion in film incentives, with New York spending at least $7 billion and Georgia spending over $5 billion since 2015.

Global competition for productions

• ▪Global competition for film and television productions has increased, with the number of worldwide incentive programs rising from 86 to 121 in 2026.
• ▪An Olsberg SPI study commissioned by the Motion Picture Association found that 65 countries offer film and television incentives at the national level.

Olsberg SPI report findings

• ▪The Olsberg SPI report released by the Motion Picture Association projected that the United States' shares of global film and television production spending would continue to decline without a federal incentive
• ▪The Olsberg SPI study projected that a federal film tax credit could add over 143,000 jobs annually and boost domestic production spending by $125 billion by 2035.

Federal incentive history

• ▪The United States currently has no national programs offering film and television incentives.
• ▪A prior federal tax deduction designed to keep film production in the United States was enacted in 2004 and expired at the end of 2025.

Debatable claims

• ▪The United States should establish a federal film tax credit
• ▪Including above-the-line star salaries in the federal film tax credit is unjustified
• ▪Excluding daytime dramas and talk shows from the federal film tax credit is unjustified
• ▪Stacking federal film tax credits on top of state incentives is an excessive subsidy