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Lawmakers Propose Federal Film Tax Credit
Confirmed
In Short: Lawmakers are developing legislation to create a 20% federal tax credit for movies and TV shows filmed in the U.S., aiming to bring production back to the country.
Lawmakers on Capitol Hill are developing legislation to create a 20% federal tax credit for movies and TV shows filmed in the United States, according to KSWO 7News and The Hollywood Reporter.
The proposed legislation, known as the Motion Picture, Television, and Entertainment Revitalization Act, would establish a 20 percent base tax credit on labor expenses if signed into law.
Former Universal senior executive Kenneth Nowling explained that finding ways to cut costs is a normal part of the modern business model in the film and TV industry, which he described as a 'multi-billion dollar factory on wheels.
The legislation would stack on top of existing state incentives, potentially offering extra bonuses for filming in rural areas or spending thresholds that reward productions utilizing multiple states.
The bill, introduced by a bipartisan group of lawmakers, aims to stop the exodus of TV and film production leaving the United States for countries offering higher incentives.
Projects with a budget over $1 million, where 75 percent of filming occurs in the U.S., would be eligible for the credit.
The legislation would exempt news programs, talk shows, soap operas, live sports, social media videos, commercials, and corporate videos from the tax credit.
Sen. Adam Schiff, who has been working on a potential federal tax credit for 20 to 25 years, said in a statement that he had been championing a federal film tax credit to stop the exodus of TV and film production leaving the United States.
The MPA released a study last week that found that a federal incentive would double the nation’s $20 billion film and TV production industry by 2032, and create some 143,500 jobs.
Lynne Skromeda, Manitoba’s film commissioner, noted that it’s unclear how much of an impact a U.S. credit would have on production in the province.
A series of 'uplifts' would grant 5% bonuses for filming in rural areas or for independent productions, bringing the potential maximum to 30% of labor costs.
What's confirmed
- Lawmakers on Capitol Hill are developing legislation to create a 20% federal tax credit for movies and TV shows filmed in the United States, according to KSWO 7News and The Hollywood Reporter.
- The proposed legislation, known as the Motion Picture, Television, and Entertainment Revitalization Act, would establish a 20 percent base tax credit on labor expenses if signed into law.
- Former Universal senior executive Kenneth Nowling explained that finding ways to cut costs is a normal part of the modern business model in the film and TV industry, which he described as a 'multi-billion dollar factory on wheels.
- The legislation would stack on top of existing state incentives, potentially offering extra bonuses for filming in rural areas or spending thresholds that reward productions utilizing multiple states.
- The bill, introduced by a bipartisan group of lawmakers, aims to stop the exodus of TV and film production leaving the United States for countries offering higher incentives.
- Projects with a budget over $1 million, where 75 percent of filming occurs in the U.S., would be eligible for the credit.
- The legislation would exempt news programs, talk shows, soap operas, live sports, social media videos, commercials, and corporate videos from the tax credit.
- Sen. Adam Schiff, who has been working on a potential federal tax credit for 20 to 25 years, said in a statement that he had been championing a federal film tax credit to stop the exodus of TV and film production leaving the United States.
- The MPA released a study last week that found that a federal incentive would double the nation’s $20 billion film and TV production industry by 2032, and create some 143,500 jobs.
- Lynne Skromeda, Manitoba’s film commissioner, noted that it’s unclear how much of an impact a U.S. credit would have on production in the province.
- A series of 'uplifts' would grant 5% bonuses for filming in rural areas or for independent productions, bringing the potential maximum to 30% of labor costs.
What's still developing
- “The industry itself is looking for areas to shoot to save money. Now that’s just tax credits and different avenues—that’s a normal thing,” Nowling said.
- “However, I just think that the content creators and filmmakers in these towns have great opportunities to make content in their cities.” Oklahoma has already made a name for itself on the big screen, hosting major projects like Twisters and Reservation Dogs through the Filmed in Oklahoma Act, which offers rebates for hiring local crews and filming in rural communities.
- While a federal film and television tax incentive was on the industry’s policy wish list for decades, the unlock arrived thanks to an unusual area of common ground that Hollywood found with the second Trump administration.
- “I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America,” Trump wrote, referring to a federal tax credit, in a social media post on Aug. 31.
- “For over a year, I’ve worked to build a coalition of unions, studios, Republicans & Democrats and the White House, because we knew that a national film tax credit would bring hundreds of thousands of jobs back to our country,” she said.
- In an interview on Thursday after the press call, Sen. Schiff said that he had been working on a potential federal tax credit for 20 to 25 years, dating back to when he was a member of the House of Representatives.
- Originally from Hong Kong, I grew up in Scarborough and credit my upbringing in the predominantly Chinese neighbourhood of Agincourt for helping me brush up on my Cantonese.
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- By Scott Roxborough, Patrick Brzeski September 4, 2026 2:59pm Paul Schrader and the cast of The Basics of Philosophy got a warm reception at the film’s world premiere in Venice Friday night, with the 80-year-old director choking up as the credits rolled and the applause rose.
- Martin Scorsese, who directed several of Schrader’s screenplays, most famously Taxi Driver, Raging Bull and The Last Temptation of Christ, is executive producing the film, as he last did with Schrader’s The Card Counter (2021).
- The film’s sombre tone and subject matter likely put a damper on the Lido crowd’s reaction, but the movie was well received, with the audience rising for a standing ovation, clapping warmly for four minutes.
- Paul Schrader gets choked up during the 4-minute standing ovation following the world premiere his film ‘The Basics of Philosophy’ at the Venice Film Festival.