Hollywood backs 20% federal tax break to bring film jobs home
Hollywood's studios and unions say a 20% federal tax break on production labour would create 143,500 jobs a year and double the size of domestic film production by 2032.
The claim comes from a report unveiled on 15 September by the Motion Picture Association (MPA), the trade body for the major studios, and a coalition of unions, according to Variety. The MPA, led by chairman and chief executive Charles Rivkin, presented the findings on a Zoom press conference with actor Jon Voight and US Representatives Laura Friedman and Brian Jack.
Friedman, a Democrat, and Jack, a Republican, are the co-authors of the proposed federal measure. The report proposes a 20% credit on production labour costs, meaning producers could claim back one-fifth of what they spend on American workers.
The report also projects 125.3 billion dollars in additional spending cumulatively through 2035 if the incentive goes ahead. That figure covers the extra money the authors say would flow through the US economy from more shoots staying at home.
No bill exists yet. Legislative text is expected later in September.
The push follows a call on 31 August 2026 by Donald Trump for Congress to pass tax incentives for the entertainment industry, as reported by Reuters. Friedman welcomed that call in a 31 August press release as a step toward bipartisan action. Several Hollywood unions also praised the idea in early September.
An earlier Trump-backed outline called for a 15% to 20% federal credit on production labour, according to the Los Angeles Times. Supporters said the credit could win back jobs that moved overseas in search of cheap labour and larger incentives, according to the New York Times.
For viewers, this means jobs before titles. A federal credit would sit alongside existing state tax breaks and affect where films shoot, how many crews are hired and how steadily work flows through the year.
