Trump Proposes Federal Tax Incentive for Film and Television

President Donald Trump has put forth a proposal for a federal tax incentive aimed at revitalizing film and television production in the United States.

On Monday, the president took to his Truth Social account, urging both Republicans and Democrats to come together in a bipartisan effort to bring production jobs back to America.

“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,” he said.

He further emphasized that “Congress should approve, immediately, a Federal Production Incentive to create entertainment jobs in America. It can be done quickly, accurately, efficiently, and, importantly, will benefit ALL of America.” Trump stated that films ought to be produced in what he referred to as the historical capital of cinema. “Let’s get this done!”

This announcement follows his previous threat of imposing a 100% tariff on films produced overseas, which had led industry insiders to advocate for tax credits that would align with those in Canada and the United Kingdom.

According to reports, Senator Adam Schiff (D-CA) has pointed out the decline of production in Hollywood, mentioning during a recent meeting that around 45% of all U.S. films and scripted shows are being filmed internationally. He expressed concern that over 42,000 jobs have been lost due to this trend, as foreign governments actively invest to grow their own film industries.

Despite acknowledging some incentive programs in California that help retain production, Schiff called for a federal tax credit, arguing that state initiatives alone cannot compete with the broader, more competitive incentives needed to halt the offshoring of production.

Industry representatives have shown support for the idea of a U.S. federal incentive program that would aim to keep more production within the country.

“Theoretically, it just makes a lot of sense,” remarked Joe Chianese, senior vice president at Entertainment Partners. “If it were to happen, it would definitely benefit not just California, but U.S. production as a whole.”

Reports suggest that this federal tax incentive would provide studios and producers with a rebate on a percentage of their production costs, which might complement existing state-level credits available in states like California, New York, Georgia, and New Jersey. Tax incentives have become a tool for economic development in about 80 countries, with production hubs emerging in various global locations.

Schiff publicly supported Trump’s proposal on social media, stating, “I am in strong agreement with the President. Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries. Let’s work together — Republicans and Democrats — to get this done, and bring the movie magic back to America.”

Representative Laura Friedman, a Democrat from Burbank, echoed this sentiment, asserting that rapid passage of tax incentive legislation is crucial. She noted her ongoing work with various stakeholders, including actors like Jon Voight, to advocate for a national film and television tax credit. “There’s no reason Canada, the UK, or Australia should be taking our jobs. We still have the best crews on the planet. It’s time we made it possible for them to stay where they belong: in America,” she said.