Congress Proposes Tax Breaks to Boost U.S. Film Industry

A bipartisan group of lawmakers is pushing for significant tax incentives aimed at keeping America competitive in the film industry.

This initiative seeks to enhance existing state tax breaks for film, television, and streaming productions, as reported by Variety.

“If this passes and aligns well, shooting in states like Georgia, California, or New York could become the most attractive option globally. Nothing abroad can really compete with that,” commented Joe Chianese, senior vice president for incentives at Entertainment Partners.

The legislation was developed in partnership with Hollywood unions and the Motion Picture Association. It aims to counter the substantial subsidies that foreign countries, such as the U.K. and Canada, are offering to their entertainment sectors.

Rep. Nathaniel Moran (R-TX) remarked, “To keep American storytelling rooted in America, we need to level the playing field. This bill precisely addresses that. It’s not about giving Hollywood a handout; it’s about empowering American workers, one story and production at a time.”

Sen. Tim Scott (R-SC) added, “We cannot simply watch as more American film production shifts overseas, dragging along jobs, investments, and a vital piece of American cultural identity. This legislation has the potential to create jobs nationwide, boost local economies, and help ensure the next wave of iconic American films is produced right here.”

Democratic Senator Adam Schiff from California also expressed concern over American job losses, stating, “We now have the best chance in decades to make this happen.”

The proposed 20% base credit would apply to all labor costs, covering both below-the-line and above-the-line expenses. There would also be a series of “uplifts,” allowing for 5% bonuses for productions shot in rural areas or for independent filmmakers, which could potentially increase the maximum credit to 30% of labor costs. Additionally, Los Angeles County would receive a 5% bonus for the next five years due to its designation as a federal disaster area, according to Variety.

Reports indicate that in June alone, the film and sound recording industry faced a loss of 3,600 jobs, contributing to a total of at least 17,000 jobs lost in 2025.

According to the U.S. Department of Labor Statistics, the entertainment sector has lost about 100,000 jobs since 2016.