Hollywood Democrats and Unions Push for Federal Film Tax Credit by December
Hollywood could soon get its first nationwide tax break for shooting in America.
Senator Adam Schiff and eight Democratic House members from Southern California stood with union leaders outside the Alex Theatre in Glendale on Tuesday, 6 October, to urge Congress to pass the measure by the end of the year. The rally was organised by the office of Rep. Laura Friedman, according to Variety.
The bill was introduced last month. It would offer a 20% to 30% transferable tax credit on US labour costs for films and television shows, meaning a production could reclaim that share of its wage bill or sell the credit on if it owes little tax.
The argument is jobs. Schiff and the House members said the United States must answer incentives offered by 65 other countries that have drawn American shoots overseas.
The numbers behind that warning are stark. A coalition of industry unions reported on Monday that the US share of global production spending fell from 74% to 42% in film and from 94% to 64% in television over the past 25 years, according to Variety.
The proposal also adds top-ups. There is a 5% bonus for filming in a disaster area, which would cover all of Los Angeles County until January 2030 because of last year's fires. Further bonuses would apply to independent films and to shoots in rural opportunity zones.
Support is bipartisan, at least in the Senate. Twelve senators, six Democrats and six Republicans, now back the bill. Sens. Thom Tillis, R-N.C., and Chris Coons, D-Del., are the latest co-sponsors. The lead Senate sponsors are Sen. Tim Scott, R-S.C., and Schiff.
Friedman said the aim is to get the incentive to the president's desk by mid-December as part of a larger tax package. In August, President Donald Trump called on Congress to pass a film incentive immediately.
What makes this stand out for viewers is simple. Tax rules help decide where a series or film is made. That choice decides where some 200 crew members work, and whether a story set in Los Angeles is actually shot there.
