Key facts
- Hollywood is lobbying Congress to pass a federal film and television production tax incentive.
- A new report projects the incentive could lead to $125.3 billion in additional U.S. production spending over nine years.
- President Donald Trump has publicly supported the creation of such a federal incentive.
- Bipartisan legislation for the tax incentive may be introduced as soon as this week.
- The Motion Picture Association commissioned the report to support the industry's lobbying efforts.
- The proposed incentive aims to help the U.S. compete with tax breaks offered by countries like Canada, the U.K., and Australia.
Hollywood is intensifying its efforts to persuade Congress to pass a federal film and television production tax incentive, a measure that has received backing from President Donald Trump. A new report commissioned by the Motion Picture Association projects that such an incentive could spur $125.3 billion in additional U.S. production spending over the next nine years. This push comes as bipartisan legislation is reportedly being prepared for introduction as soon as this week. The industry is facing challenges including the rise of artificial intelligence and potential layoffs amid mergers. Trump has publicly called for lawmakers to "immediately" create the federal incentive, aiming to prevent entertainment work from moving overseas and to boost the U.S. production business. He has indicated that meetings are being set up with bipartisan leaders to craft legislation. Advocates argue that a federal tax credit is crucial for the U.S. to compete with incentives offered by countries like Canada, the U.K., and Australia. The Motion Picture Association and the Directors Guild of America have both applauded Trump's support and expressed eagerness to work with Congress on enacting the legislation.