A bipartisan group of lawmakers introduced the Motion Picture, Television, and Entertainment Revitalization Act on Sept. 24, proposing a 20% federal tax credit for film, television, and visual effects productions based in the U.S. The bill, introduced in both the Senate and House, seeks to counter the exodus of American film production to international markets by offering financial incentives to productions that meet specific criteria.
The legislation would allow productions to earn optional 5% bonus credits, stacking up to a 30% total credit under certain conditions. These include filming in rural opportunity zones, federally declared disaster zones, multi-state productions, or independent productions. Additional eligibility requires productions to increase domestic filming relative to prior foreign investment. The tax credit excludes live sporting events, sexually explicit material, marketing, daytime dramas, award event programming, social media posts, and other non-legacy media productions.
Key provisions of the bill
The bill defines eligibility for the tax credit with specific requirements. Productions must spend at least $1 million in total costs, with 75% of principal filming days occurring in the U.S. For multi-state productions, productions must film at least half of their days and spend $10 million in qualified compensation across 10 or more states to qualify for an additional uplift. Feature films, TV shows, and TV pilots are eligible, while live sports, daytime dramas, talk shows, news, social media content, advertising, and corporate videos are excluded.
The legislation is co-sponsored by Sens. Tim Scott (R-S.C.), Adam Schiff (D-Calif.), John Cornyn (R-Texas), and Raphael Warnock (D-Ga.); and Reps. Nathaniel Moran (R-Texas), Linda Sánchez (D-Calif.), Brian Jack (R-Ga.), and Laura Friedman (D-Glendale). Supporters argue the bill would create jobs, support local economies, and preserve American cultural influence.
Rationale behind the legislation
Proponents of the bill, including Sen. Scott, emphasize the need to prevent further loss of American film production to overseas markets. "We cannot stand by as more and more American film production moves overseas, taking jobs, investment, and an important source of American cultural influence with it," Scott stated in a press release. Rep. Sánchez echoed this sentiment, highlighting the importance of keeping jobs in the U.S. and ensuring the next generation of iconic American films is produced domestically.
The bill’s sponsors include members from both parties, reflecting a rare bipartisan effort in Congress. The legislation follows President Donald Trump’s call for Congress to establish federal incentives to compete with international production markets. Advocates argue that the U.S. has lost ground to countries offering more competitive tax incentives, leading to a decline in domestic production.
Potential impact and industry response
The proposed tax credit is designed to make U.S. productions more competitive with international alternatives by reducing costs for filmmakers. The inclusion of bonus credits for productions in rural or disaster-stricken areas aims to distribute economic benefits more broadly across the country. Industry groups, including the Motion Picture Association, have praised the bill as a game changer for the U.S. film and television sector.
However, the bill’s exclusions—such as live sporting events, daytime dramas, and social media content—limit its scope. Critics may argue that these exclusions reduce the bill’s potential impact on certain segments of the entertainment industry. Additionally, the requirement that productions spend $1 million or more could exclude smaller independent projects from benefiting.
The bill’s introduction comes at a time when film and television productions have increasingly relocated to countries with more favorable tax policies. Proponents hope the federal tax credit will reverse this trend by making domestic production more financially viable.