Federal Film Tax Credit Proposed
Bipartisan Lawmakers Introduce Federal Legislation to Create a New Film Tax Credit
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Key Points
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The proposal is titled the Motion Picture, Television, and Entertainment Revitalization Act. Its Senate sponsors are Adam Schiff and Tim Scott, while the House sponsors include Laura Friedman, Nathaniel Moran, Linda Sanchez, Brian Jack, David Kustoff, Judy Chu, Mike Carey, and Tom Suozzi.
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For animation, the U.S. eligibility test is based on costs rather than production days: at least 75% of the production cost must be incurred in the United States.
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The disaster-area bonus could have a specific, extended application in Los Angeles County: after the county was declared a federal disaster area following the 2025 Palisades and Eaton fires, the bonus would remain available there until January 2030 if the proposal becomes law.
Bipartisan lawmakers introduced legislation to create a federal film tax credit aimed at bringing movie and TV production back to the United States. The Motion Picture, Television, and Entertainment Revitalization Act offers a 20% credit on labor costs, rising to 30% with bonuses, and requires projects to spend at least $1 million and film 75% of production in the U.S. The Epoch Times reports the bill has backing from President Donald Trump and the Motion Picture Association.
Senate sponsors Adam Schiff (D-Calif.) and Tim Scott (R-S.C.) are pushing the bill forward alongside House members including Laura Friedman, Nathaniel Moran, Linda Sanchez, Brian Jack, David Kustoff, Judy Chu, Mike Carey, and Tom Suozzi. Daily Breeze notes lawmakers hope the bill could become law by year's end, though it must still advance through Congress.
Tax Credit Details and Eligibility Requirements
The bill offers a base 20% credit on qualifying labor costs for film and TV projects. Spectrum Local News reports the credit can climb to 30% through performance bonuses. Projects must spend at least $1 million and conduct 75% of production work inside the U.S. Qualifying postproduction and visual-effects costs also count toward the credit, and state incentives can stack on top of the federal benefit.
Animation gets special treatment: instead of counting production days, at least 75% of animation production costs must occur in the U.S. Extra bonuses apply for independent productions, work in disaster areas, projects filmed across multiple U.S. locations, and production moved back from overseas. News programs, talk shows, live sports, and commercials are excluded.
Los Angeles Gets Extended Disaster-Area Benefits
Los Angeles County earned federal disaster-area status following the 2025 Palisades and Eaton fires. If the bill passes, film productions in the county would qualify for disaster-area tax credit bonuses through January 2030. This extended window gives the industry years to ramp up production in the region as it recovers from the fires.
Bipartisan Support and Industry Backing
The bill has unusual cross-party backing in a divided Congress. Sponsors span California, Texas, and South Carolina, signaling broad geographic support. Daily Breeze reports that President Donald Trump and the Motion Picture Association both endorse the measure. The sponsors say the federal credit will help U.S. studios compete with overseas incentives that have pulled production away from American workers.
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