# Congress Begins Drafting 20% Federal Film Incentive With Trump’s Blessing (EXCLUSIVE)

- URL: https://talkfuse.com/story/congress-begins-drafting-20-federal-film-incentive-with-trumps-blessing-exclusive/
- Published: 2026-09-08T23:10:28+00:00
- Updated: 2026-09-08T23:32:12+00:00
- Original publisher: Variety
- Original article: https://variety.com/2026/film/news/congress-draft-federal-film-incentive-trump-1236855119/
- Topics: Entertainment, Film, Government, Politics, TV

## Key points

- Congress drafting 20% federal film/TV tax credit after Trump's backing
- Bonuses could raise the credit to 30%, stacking with state incentives
- Bill expected soon but cost and passage timing remain uncertain

## Summary

Members of Congress have begun drafting bipartisan legislation to create a 20% federal tax incentive for film and television production, following President Trump's endorsement of the idea in a Truth Social post on 31 August. The move is significant because it would mark the first federal-level response to the entertainment industry's long-running campaign against generous overseas subsidies from countries such as the UK, Canada and Australia, which have drawn productions away from the US, and Trump's backing is expected to unlock Republican support that had previously been lacking.

The bill, being worked on by Republicans Nathaniel Moran and Brian Jack alongside Democrats Linda Sanchez and Laura Friedman, would offer a base 20% credit on all labour costs, with up to two "uplift" bonuses of five percentage points each pushing the maximum to 30%, potentially yielding a combined federal-state subsidy of 60% or more. It would cover films, scripted TV, reality shows and animation, but not news or sports, and could be used against federal tax liability or sold to another taxpayer, though it would not be refundable. The legislation, expected to be introduced within weeks, has yet to be costed by the Joint Committee on Taxation but is likely to run into billions of dollars; supporters hope it could pass during the post-election lame duck session, though next year is seen as more likely.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.