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Lawmakers Introduce 20-30% Federal Film Incentive
Variety • • general
Key Points:
- A bipartisan group of U.S. lawmakers introduced federal legislation proposing a 20%-30% film and TV production incentive to bolster American dominance in entertainment and counteract subsidies offered by other countries.
- The incentive would stack with existing state tax credits, potentially creating the world's most generous subsidies for film and TV, with bonuses for rural filming, independent productions, and disaster-affected areas like Los Angeles County.
- The legislation, backed by Hollywood unions, the Motion Picture Association, and President Trump, aims to reverse a production slump that has cost over 50,000 jobs in Los Angeles and strengthen the domestic film industry.
- Supporters argue the incentive would create jobs, boost local economies, and preserve American cultural storytelling, with projections suggesting it could double the U.S. film and TV industry and generate over 140,000 jobs by 2032.
- Some international regions with generous incentives, such as Manitoba, Canada, are uncertain about the impact of the U.S. credit but acknowledge that currency exchange rates and other factors may still keep them competitive.
