A bipartisan duo said they are drafting a federal production tax incentive program to increase the share of film and television productions made in the U.S.
Major show business stakeholders joined lawmakers Tuesday to petition Congress on President Trump’s federal tax incentive push to prevent film and TV production from moving overseas.
Dozens of countries, including major hubs such as Canada, the United Kingdom and Australia, have established national film and television production incentive programs to attract global entertainment spending.
Rep. Laura Friedman, California Democrat, said in a Tuesday press conference it is a “major mistake” that the U.S. has nothing to compete at the federal level.
The former film producer and Rep. Brian Jack, Georgia Republican, are drafting a bill on the matter, but declined to confirm a timeline or details of the legislation.
But the measure, which is expected to be introduced this month, reportedly would create a 20% federal tax incentive with bonuses that could reach up to 30%, according to Variety.
Steven Paul, CEO of Crystal Sky Pictures, said he wants to see a bill before the end of the year, so that producers preparing for shoots can be back in America.
Over the past year, unions and studios have been advocating for an incentive that would compete with other countries’ tax credits. Now, they are looking to be on their way to receiving their subsidy wish list, similar to those offered by 39 U.S. states.
While many states have stepped up with their own production tax credit programs, state incentives alone are not enough to stop productions from leaving the country, said Matthew Loeb, international president of the International Alliance of Theatrical Stage Employees.
The U.S. is competing against more than 120 production tax breaks worldwide, and “what we need is a level playing field,” he said.
Productions are increasingly being produced overseas because other countries have “national policies that recognize the economic value of film and television production, and they offer robust incentives that the United States simply does not match,” he said.
A study released Tuesday, commissioned by the Motion Picture Association, found that a federal tax break could increase U.S.-based production globally by 13%.
Charles Rivkin, CEO of the Motion Picture Association, said that this would be a game changer for the film industry — the kind of step that will “not only be remembered by future generations, but shape the stories that they tell and where they tell them.”
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