US President Donald Trump has publicly backed a federal tax incentive for film and television production, a step Hollywood studios and unions have long campaigned for. In a Truth Social post, Trump called on Republicans and Democrats to work together to draft legislation "immediately", saying it would create entertainment jobs and revive an industry he described as being "dissipated in its entirety" as productions have shifted abroad, particularly to Canada. The announcement marks a shift from his earlier repeated threats to impose a 100% tariff on films made overseas, and follows lobbying by industry figures to redirect his focus towards a tax credit similar to those already offered by Canada, the UK and 39 US states.

Supporters point to roughly 73,000 jobs lost nationwide since the streaming bubble burst in 2022, about two-thirds of them in Los Angeles. Democratic senator Adam Schiff has previously proposed a 15% credit on US labour costs, while the Motion Picture Association has been working with Trump's Hollywood "special ambassador" Jon Voight to push for a 20% credit; Trump said he had recently met Voight on the issue. MPA chief executive Charles Rivkin welcomed the move, saying it would strengthen the economy and make America more competitive for production, while lawmakers are separately seeking to revive Section 181, an expired tax provision that allowed independent producers to accelerate depreciation on film investments.