The U.S. has traditionally been a frontrunner in film and television, but this leadership is increasingly jeopardized by the rise of foreign productions.
Currently, the sole federal tax incentives to keep film production in America are set to lapse at the end of the year. This poses a significant risk of losing even more jobs and projects to countries that provide more appealing incentives.
When productions shift overseas, it’s American workers, small businesses, and communities—from New York to California—who bear the brunt. A bipartisan initiative is underway to enhance Section 181, aimed at ensuring the film industry’s survival. This proposed bill seeks to extend this credit for another five years and to double the current cap, which would encourage producers to continue investing domestically.
The economic significance of film and television is real. A report from the Motion Picture Association of Japan notes that the industry supports approximately 2.32 million jobs and contributes around $229 billion in annual wages, benefiting over 122,000 businesses across the U.S. This impact is especially pronounced in Congressional districts. For instance, in New York City, a recent study revealed that the industry supports 185,000 jobs, generates $18.1 billion in wages, and contributes to a total output of $81.6 billion.
With iconic studios like Disney, Paramount, Universal, and Warner Bros. situated here, the industry sustains over 325,000 jobs, produces $38.5 billion in wages, and has an economic footprint of $117.2 billion. The fate of many Americans—including actors, production staff, and local businesses—hinges on domestic production. Entertainment reflects the strength and resilience of both communities and nations.
The significance of this industry resonates deeply with many of us. Two current members of Congress from the entertainment epicenter and a prominent actor and film leader understand the challenges posed by foreign tax incentives. All too often, American talents and communities suffer when producers are left with no choice but to film overseas. The proposed act aims to create a more level playing field, so our producers, directors, and creative professionals can keep delivering world-class entertainment domestically.
This isn’t just a political issue. Safeguarding American jobs and bolstering the entertainment sector are objectives that resonate with both Republicans and Democrats. As this crucial incentive is set to expire at year’s end, it’s essential for Congress and industry leaders to collaborate, as we are committed to doing, to ensure that the vibrant U.S. entertainment landscape remains competitive, continues to support American workers, and keeps delighting global audiences for years to come.
Nicole Malliotakis represents New York’s 11th Congressional District, while Judy Chu represents California’s 28th Congressional District. Jon Voight serves as a special ambassador for Hollywood, appointed by the president.
