Memorandum
- From
- Delaney Sawyer via fox - Opinion
- Date
- Filed
- Business·4 min to read
- Re
Trade groups urge Congress to pass federal film production tax incentive
ReTrade groups urge Congress to pass federal film production tax incentive
Industry leaders and labor representatives urge Congress to enact a federal tax incentive to bring back film and TV production jobs they say are slipping overseas.
Leaders representing major American studios, a union-backed workforce of 1.3 million people and nearly 170,000 skilled behind-the-scenes workers are jointly urging Congress to pass a federal film and television production incentive this year. They argue that the measure would reverse a steady loss of production work to other countries and protect jobs across all 50 states.
The authors describe the film and TV industry as a major economic engine that generates more than 2 million jobs nationwide each year. According to their figures, production supports more than 162,000 businesses and pays over $200 billion in wages to U.S. workers annually. They also say the industry runs a trade surplus with nearly every nation on Earth.
The appeal centers on competition. The authors say more than 120 jurisdictions around the world now offer production incentives, and the American share of global production has fallen from a historic 65 percent benchmark to about 39 percent today. They describe the decline as more than an abstract statistic, pointing to dark soundstages, unreliable paychecks and fewer good-paying jobs.
To support their case, the writers cite a study that estimates returning the U.S. to its historic 65 percent share would add almost $250 billion to local economies and create more than 143,000 additional jobs per year. A separate analysis of production decision-making found that such a program would make 80 percent of projects competitive to shoot domestically.
The authors point to state programs as evidence that incentives pay for themselves. One study found the Georgia film tax credit generates a 6.3-to-1 return on investment through new economic activity, while another found Texas adds $4.50 to its local economy for every dollar invested in its incentive. They note that the federal government already uses targeted incentives in strategic industries such as pharmaceuticals, aerospace and automobiles.
The writers also say that American-made films and shows shape foreign attitudes, with research indicating that overseas audiences become more likely to visit the U.S., buy American products and engage with American culture and history after watching them.
They credit President Donald Trump with prioritizing the issue and cite his recent call for Congress to approve a federal production incentive to create entertainment jobs in America. They also endorse the Motion Picture, Television, and Entertainment Revitalization Act, which has been introduced in the Senate and House with bipartisan sponsorship. Named sponsors include Sen. Tim Scott, R-S.C., Sen. Adam Schiff, D-Calif., Rep. Nathaniel Moran, R-Texas, Rep. Linda Sánchez, D-Calif., Rep. Brian Jack, R-Ga., and Rep. Laura Friedman, D-Calif., along with more than 50 bipartisan co-sponsors.
The authors frame the effort as a matter of national identity as well as jobs, writing that America has long led the world in film and television production and that Congress must act so that every American affected by the industry can return to work.
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