Federal film incentive wins Hollywood heavyweight support to boost US production
A bid to boost U.S. production just got powerful backup, with Hollywood studios and unions lining up behind a proposed federal film incentive.
The push centers on a new proposal for a 20% federal credit on qualifying production labor, which studios and the major entertainment unions say would put more shows and movies back on U.S. soundstages. Backers are pointing to fresh modeling that links the credit to a surge in domestic filming and a wave of below-the-line hiring across the country.
- The plan could add about 143,500 production jobs a year, according to an MPA-commissioned report by Olsberg SPI.
- U.S. film and TV production could double by 2032 under the credit, per the study.
- Annual production spending could reach $34.7 billion by 2032 with the credit, versus $16.9 billion without it.
- Cumulative additional spending through 2035 is estimated at $125.3 billion.
The centerpiece is a 20% federal credit on qualifying production labor.
What the credit would do
Right now, productions chase the best deal state by state or head overseas, where national incentives can be richer. The proposed federal credit would stack on top of existing state programs, giving U.S.-based shoots a nationwide boost instead of a patchwork of options that can push work to Canada, the U.K., and beyond.
That’s why studios and unions are moving in lockstep. The Motion Picture Association and labor groups including SAG-AFTRA are promoting the measure as a jobs engine that benefits crews, technicians, drivers, electricians, carpenters, and the local businesses that feed and house productions.
Who’s backing it
MPA chairman and CEO Charles Rivkin and SAG-AFTRA president Sean Astin have been out front alongside a bipartisan duo in Congress: Rep. Laura Friedman (D) and Rep. Brian Jack (R). Supporters also picked up a political boost when Donald Trump endorsed the concept last month.
The bill itself hasn’t been formally introduced yet. Backers say they expect legislative text this month and are aiming for congressional action before the end of the year.