Lawmakers Unveil 20%-30% Federal Film Incentive Bill — SkimNews
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- Bipartisan lawmakers unveiled federal legislation Thursday creating a 20%-30% U.S. film incentive designed to stack on top of existing state tax credits, producing what one industry expert called "the best deal on the planet" for shooting in Georgia, California, or New York.
- The bill offers a 20% base credit on all labor costs — both below-the-line and above-the-line — with 5% "uplifts" for rural filming, independent productions, or LA County (which qualifies for the next five years as a federal disaster area), bringing the potential maximum to 30% of labor costs.
- President Trump endorsed the effort last month, calling on Congress to "immediately" craft legislation to save the industry, joining a two-year push from Hollywood unions and the Motion Picture Association to counter subsidies in the U.K., Canada, and 63 other countries.
- The MPA's study projects the incentive would double the $20 billion U.S. film and TV production industry by 2032 and create 143,500 jobs, addressing a historic slump that has cost more than 50,000 jobs in Los Angeles County alone over the past four years.
- Bill sponsors Rep. Nathaniel Moran (R-Texas), Sen. Tim Scott (R-S.C.), and Sen. Adam Schiff (D-Calif.) are framing the measure as supporting "the American worker" rather than subsidizing Hollywood, even as California's existing 35%-45% state credit — capped at $750 million per year — is itself under debate.
- Manitoba film commissioner Lynne Skromeda said the province may still compete despite the U.S. push, noting local producers believe Manitoba's up-to-65% labor credit combined with favorable currency exchange rates would keep it attractive for productions weighing where to shoot.
- Entertainment Partners' Joe Chianese predicted foreign competitors will respond: "The UK and Canada are going to do what they can to protect the industry they have," setting up a potential subsidy escalation among the roughly 65 nations now using incentives to attract film production.
Why it matters: Combined with existing state tax credits, the bill would create the world's most generous film subsidy package, directly challenging the U.K., Canada, and 63 other countries that have lured production abroad with incentives. Industry experts predicted foreign competitors — Manitoba currently offers up to 65% labor credits — would respond with new measures, with Manitoba's film commissioner noting currency exchange rates would keep her province competitive against the U.S. push.
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