A coalition of Hollywood unions is advocating for Congress to implement a federal film tax credit, backed by research showing a significant decline in U.S. film and TV production. Over the last 25 years, the U.S. share of major-studio spending on TV episodes dropped from 94% to 64%, and film production spending fell from 74% to 42%, according to a report commissioned by various entertainment industry unions.
The unions have partnered with the consulting firm EY Quantitative Economics and Statistics to comprehensively analyze the shifts in production locales from 1999 to 2024, focusing on major studio productions. The pending bipartisan Motion Picture, Television and Entertainment Revitalization Act proposes a 20% tax credit on U.S. labor for eligible productions, including post-production and visual effects work.
This uncapped credit would cover both production crew and “above-the-line” costs like actors’ and writers’ salaries. Additional bonus credits could apply for independent productions or those filming in certain economically disadvantaged areas. The bill is supported by a group of bipartisan congressional leaders, emphasizing the importance of retaining film and TV jobs in the U.S.
Advocates stress the urgency of the bill, with leaders highlighting the potential to create thousands of jobs and boost U.S. production spending significantly. Concerns persist among industry professionals about job security and the diminishing opportunities for families reliant on Hollywood jobs.
