US film tax credit plan adds four 5% bonuses to keep shoots at home

A film or television shoot in the United States could lift a proposed 20% federal tax break to 30% with two extra bonuses. Producer Steven Paul set out the four 5% uplifts now under discussion, in comments reported on 16 September.

The core idea is a 20% federal tax credit for labour costs on film and television production in the US, as described by Reuters. A tax credit here means a direct cut to a production's tax bill. Paul said the base rate could rise to a maximum of 30%, with any one production limited to two uplifts, according to Deadline.

The four potential uplifts are shooting in economically depressed areas, making an independent film, bringing work back to the US, and shooting in multiple US jurisdictions. Each would add 5% if a production qualifies. The credit would also be stackable with state incentives, meaning it could be claimed on top of existing state breaks, as reported by the Los Angeles Times.

Paul said the “independent” tag could apply to films made by a non-publicly traded company or an affiliate of one. The repatriation bonus, meaning bringing productions home, would give a 5% uptick if a producer or studio that shot a certain number of films abroad brings a certain number back. The multi-jurisdiction bonus would add 5% for shooting in more than one US location within a certain time period.

A fourth idea is still shifting. Backers had recommended a 5% uptick for shooting in a federally declared FEMA disaster zone. Paul said that could be kept or replaced with enterprise zones or economically depressed areas.

The proposal is aimed at curbing runaway production, the industry term for shoots leaving the US for cheaper locations abroad. Paul, chief executive of SP Media Group and agent to Jon Voight, has been working with Voight, lawmakers and industry groups on bipartisan legislation, according to Deadline. Voight is President Donald Trump’s Ambassador to Hollywood. SP Media President Scott Karol co-proposed the 20% credit with Paul, according to Fox Business.

Political backing is building. Trump has endorsed the incentive publicly and privately and urged Congress to pass it. In the House, lawmakers have formed the American Film & TV Production Caucus, with founding members Rep. Brian Jack, Rep. Laura Friedman, Rep. Nathaniel Moran, Rep. Linda Sanchez, Rep. Nicole Malliotakis and Rep. Tom Suozzi.

What makes this stand out for crews and audiences is the timetable. Backers hoped draft legislation would be ready in September 2026 within a week or two, with the aim of passing it by the end of 2026. If that happens, where the next series or film shoots, and how many local jobs follow it, could change quickly.