Bipartisan lawmakers are expected to introduce federal legislation this week to establish a film and television tax incentive, fulfilling President Trump's stated goal of luring productions back to the United States from abroad. The proposal has garnered support from key figures across both parties, including representatives and senators, and has been coordinated with the Motion Picture Association and industry stakeholders. The incentive addresses concerns that foreign locations offer more competitive conditions for film and television production.

The federal tax credit is anticipated to be set at a base rate of 20 per cent, with an additional 5–10 per cent available depending on factors such as whether production occurs in disaster zones, economically disadvantaged areas, or in independent productions. This would be stackable with existing state-level tax credits, such as those in California, substantially increasing competitiveness. Supporters argue the benefit extends beyond major stars to crew members and local service providers, whilst critics, including the Wall Street Journal editorial board, have characterised it as a subsidy to Hollywood. Given that Congress is currently recessed, the earliest realistic passage would occur during the post-midterm "lame duck" session.