Congress Begins Drafting 20% Federal Film Incentive With Trump's OK
Variety • • entertainment
Key Points:
- Members of Congress are drafting bipartisan legislation to create a federal film and TV tax incentive starting at 20%, with potential bonuses raising it to 30%, following President Trump's endorsement.
- The bill, expected to be introduced soon, would apply to a wide range of productions including reality TV and animation, excluding news and sports broadcasts.
- Producers could claim additional tax credits by meeting certain criteria, with a maximum combined credit of 30%, stacking on top of state incentives for potentially over 60% total subsidies.
- Supporters argue the incentive will boost production not only in traditional hubs like Los Angeles and New York but also in rural areas with little current filming activity.
- The legislation faces a costly price tag in the billions, but advocates believe the economic ripple effect will offset this, and there is optimism about passing the bill during the post-election lame duck session or early next year.
