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Hollywood Hopes for Federal Tax Credits to Boost Production

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In response to an exodus of movie and TV production, a bill is being introduced in Congress that would use tax credits to subsidize filming in the United States. The proposed federal tax incentive would stack atop subsidies already offered by more than three dozen states, including California.

On Thursday, lawmakers in Washington plan to introduce legislation that would create the nation’s first federal tax credits for film and television production. The bill provides a tax credit of at least 20 percent on wages of workers including actors, directors, camera operators and makeup artists. Though the program has drawn bipartisan support and backing from President Trump, passage is far from assured as midterms loom.

Sean Astin, president of SAG-AFTRA, said, “We are going to lose the primacy of entertainment production if we don’t do this.” A 2024 analysis by The Times found states had distributed more than $25 billion through their programs. Studios are filming less in Los Angeles and Atlanta, traveling instead to cities like Vancouver, London and Bucharest for larger incentives and cheaper labor.

The legislation provides a federal tax credit for labor costs on feature films, TV pilots or seasons exceeding $1 million, with at least three-quarters of work occurring in the U.S. to qualify.