Federal Film & TV Tax Credits Not A Done Deal, Adam Schiff Says; White House Involved: “Negotiations Are Ongoing”
US Senator Adam Schiff's office says a federal film and television tax credit bill is progressing, with the Senate, House and Trump administration now negotiating final legislative text, though a deal remains unfinished. The initiative, informally dubbed the Motion Picture, Television, and Entertainment Revitalization Act, would mark a significant shift in how America competes for productions currently lured overseas by more generous foreign incentives, with backing from Donald Trump adding political momentum despite unresolved details.
The working proposal centres on a 20% federal tax credit, potentially rising by 5-10% for rural filming or projects spread across multiple states, and is broadly modelled on California's $750 million annual incentive scheme. Democrats Linda Sanchez and Laura Friedman are leading House efforts alongside Republicans Nathaniel Moran and Brian Jack, while California Governor Gavin Newsom has pushed for a 20-25% credit; Paramount chief David Ellison is also reported to have influenced draft language. Democrats are focused on protecting jobs in Hollywood and New York, whereas Republicans see the bill as a way to boost production hubs in Texas and Georgia, states hit hard by runaway productions moving abroad.
- Federal film/TV tax credit bill still being negotiated, not finalised
- Proposed 20% credit could rise for rural or multi-state productions
- Democrats and Republicans back it for different regional job priorities
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Overseas incentives, particularly in Britain, Canada and Hungary, have made it cheaper for studios to film abroad, drawing production and jobs away from American cities like Los Angeles, New York, Atlanta and Austin. In response, the United States is now considering its first federal tax credit for film and television, aimed at making it more affordable to shoot in America. Until now, incentives have mostly come from individual states, such as California's own scheme, competing separately for productions.
Adam Schiff is a Democratic senator from California who has been closely involved in shaping this federal effort, sometimes referred to informally as the Motion Picture, Television, and Entertainment Revitalization Act. The proposal has drawn support from lawmakers in both major parties, reflecting different regional interests: Democrats are generally focused on protecting entertainment jobs in established hubs like Hollywood and New York, while Republicans see it as a chance to grow production in states such as Texas and Georgia.
The plan also involves input from the White House, industry figures such as Paramount's David Ellison, and state leaders including California Governor Gavin Newsom. Because it would require agreement across the Senate, the House of Representatives and the Trump administration, the proposal is still being negotiated rather than finalised, and its eventual size and shape remain undecided.
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The case for
Supporters, including lawmakers from both parties and industry figures, argue that American film and television production has haemorrhaged jobs to countries offering far more generous incentives, hollowing out skilled work in camera crews, set construction, catering and countless small businesses that depend on local shoots. They see a federal credit as a proportionate response that brings the same competitive tools other nations already use, protecting livelihoods in established hubs like Hollywood and New York while extending real opportunity to growing production centres in Texas and Georgia. The bipartisan sponsorship, they would note, reflects a shared view that this is sound industrial policy rather than favouritism, aimed at keeping a culturally significant and economically valuable industry rooted in the United States.
The case against
Sceptics, while not necessarily opposed to supporting American workers, would caution that funnelling federal tax credits into an industry dominated by highly profitable studios and well-compensated executives risks becoming a subsidy for corporate interests rather than ordinary crew members. They might point to the reported involvement of a major studio chief in shaping draft language as evidence that large industry players stand to gain disproportionate influence and benefit, and question whether an untested federal scheme modelled on California's costly state programme represents prudent use of public money compared with other priorities. For these critics, the deeper concern is one of principle: that government should be cautious about picking winners in the marketplace, however sympathetic the stated goal of protecting jobs may be.
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