New Bipartisan Legislation Proposed for Federal Film Incentives Following Trump’s Endorsement

In a significant move for the entertainment industry, members of Congress are in the process of drafting a bill that aims to establish a 20% federal tax incentive for film and television production, buoyed by President Trump's recent endorsement. This legislation, which could introduce bonuses raising the incentive to as much as 30%, is set to be unveiled imminently, possibly within the next week.

The initiative is being spearheaded by a bipartisan group led by Republican Rep. Nathaniel Moran of East Texas and Democratic Rep. Linda Sanchez from California. Both representatives are part of the House Ways and Means Committee, which handles tax-related legislation. Additionally, Democratic Rep. Laura Friedman from Burbank and Republican Rep. Brian Jack from the Atlanta suburbs are collaborating on this effort.

Details of the Proposed Incentive

The proposed legislation aligns with the requests of the Motion Picture Association, aiming to make the U.S. a more attractive destination for film production compared to countries like Canada and the U.K., which offer generous subsidies. According to insiders, the bill would provide a 20% tax credit based on all labor costs, applicable to a wide array of productions, including reality TV and animation, while excluding news and sports broadcasts.

Incentives for Broader Support

To enhance its appeal, the bill includes four “uplifts” that would allow producers to earn an additional 5% credit if certain criteria are met, potentially raising the total incentive to 30%. This federal tax incentive could be combined with state programs, allowing for total subsidies exceeding 60% in some cases. Advocates believe that this will not only benefit major production hubs like Los Angeles and New York but also encourage filming in rural areas that have seen little activity.

Furthermore, the proposal has the backing of Trump, who, in a recent post, noted that the costs associated with the incentive could be offset by increased government revenue from boosted production activity. As the bill awaits evaluation from the Joint Committee on Taxation, proponents remain optimistic about its passage, potentially during the lame duck session following the upcoming elections.

Source: variety.com