A bipartisan group of members in Congress on September 24 unveiled a bill to provide a new 20% tax credit on labor costs for domestic film and television productions, following an August 31 social media post from President Trump calling for "Federal Tax Incentives in order to Make our Movie and Television Production Business GREAT AGAIN … " The credit is proposed to be effective for productions after December 31, 2026.

Senators Tim Scott (R-SC) and Adam Schiff (D-CA) introduced the "Motion Picture, Television, and Entertainment Revitalization Act." Senator Raphael Warnock (D-GA) is expected to be the lead Democratic Finance Committee member on the bill. House Ways and Means Committee member Rep. Nathaniel Moran (R-TX) sponsors the House version, with co-sponsors including Trade Subcommittee Ranking Member Linda Sánchez (D-CA) and Committee members David Kustoff (R-TN), Judy Chu (D-CA), Mike Carey (R-OH), and Tom Suozzi (D-NY-03), plus Reps. Brian Jack (R-GA) and Laura Friedman (D-CA), whose district includes Hollywood.

"When a production comes to a community — from rural East Texas to urban New York — that money doesn't just benefit the production company. It helps the local caterer, the hardware store, the hoteliers, and every tradesman in between who makes film and television production possible," Rep. Moran said. "Those jobs are going overseas right now simply because other countries are offering bigger handouts."

A qualified film or television production for purpose of the credit is defined as a feature film, television pilot, or television season produced for commercial purposes, with a total cost exceeding $1 million and where 75% of the principal photography days occur within the United States. News, live sports, talk shows, daytime dramas, social media content, advertising, and corporate videos are ineligible for the credit.

There are 5% bonus credits provided, to increase the credit to a maximum of 30%, for circumstances like filming in a rural Opportunity Zone or a federally declared disaster area, independent productions, multi-state producers, or an increase in domestic productions relative to a historical foreign base amount. The credit is transferable, similar to the energy credits in the Inflation Reduction Act (IRA).

President Trump's push for tax incentives at the end of August was received enthusiastically in Congress by members of both parties. In addition to the new proposed credit, which could be among items under consideration for a potential year-end bill on tax and other issues, there is the separate Creative Relief and Expensing for Artistic Entertainment (CREATE) Act (H.R. 4840, S. 2530) to extend the Section 181 expensing rules for film, television, and theater productions through 2030.

Text and a summary of the Motion Picture, Television, and Entertainment Revitalization Act are attached below.

A press release is available here.