Hollywood shoots could return stateside under Congress’s proposed 20% federal film tax credit

Under a draft circulating on Capitol Hill, film and TV productions could get a 20% federal tax credit on eligible U.S. labor costs — covering both above-the-line and below-the-line workers — with the total potentially climbing higher for certain projects, Variety reports. The proposal would apply to films, scripted TV, reality TV and animation , while news and sports broadcasts would not qualify.

The bipartisan push is being led by Rep. Nathaniel Moran (R–Texas) and Rep. Linda Sánchez (D–California), both members of the House Ways and Means Committee. The bill is expected to be introduced this month, according to multiple reports.

How the credit would work

While the base credit sits at 20%, industry sources say bonuses could bring the total to as high as 30%. The draft would also let producers earn an additional 5% by meeting certain requirements, including:

• Producing in a rural opportunity zone
• Qualifying as an independent production
• Repatriating a set amount of filming from abroad to the U.S.
• Spending at least $10 million in 10 different states within a single year

Backers are pitching the measure as a counter to the rich subsidies offered in places like Canada and the U.K., which have lured a steady stream of U.S. shoots in recent years. A federal layer, on top of existing state programs, is aimed at keeping more productions — and jobs — at home.

“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America,”

President Donald Trump voiced support for the idea in an August post on Truth Social, adding that it could be done quickly and efficiently.

The proposal is still a draft and details could shift, but the framework — a 20% federal credit on labor with targeted bonuses — is expected to be formally introduced this month.