Bipartisan lawmakers introduced a bill for an uncapped 20% federal tax credit on U.S. labor costs for eligible film and TV productions, including crew, actors, writers, post-production and visual effects; bonus provisions could raise it to 30%.
Feature films, TV shows and pilots would qualify only if they cost more than $1 million and at least 75% of principal filming days are in the U.S.; live sports, daytime dramas, talk shows, news, social-media content, advertising and corporate videos are excluded. The bill includes 5% bonus credits for independent productions and shoots with at least 30% of principal photography in a rural qualified opportunity zone or federally declared disaster area. Productions filming at least half their days and spending $10 million or more in qualified compensation in 10 or more states could also qualify for an additional uplift.
Hollywood unions and industry groups support the proposal. A study commissioned by the Motion Picture Assn. projected it could increase U.S. production spending by $125 billion and add more than 143,000 jobs by 2035; how much spending would reach California is unclear. Sen. Adam Schiff said passage may be possible after the Nov. 3 election. The White House did not immediately respond to a request for comment.
