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Studios and Unions Unite Behind 20% Federal Film Tax Credit Push
By @sharedot · · 7 pages
A new MPA-commissioned study projects a federal film tax credit could add $125.3 billion in U.S. production spending and 143,500 annual jobs through 2035.
A Coalition Forms as the Incentive Takes Shape
Deadline reports that studios, unions, guilds, film commissioners and industry groups launched the U.S. Film & TV Production Coalition on Tuesday, presenting a united front as a federal production incentive begins to take shape. The coalition's membership spans the MPA, DGA, PGA, SAG-AFTRA, WGA West and East, IATSE, the Teamsters, the Television Academy and dozens of other organizations, with actor Jon Voight among its members. The launch coincided with a press conference where MPA chairman Charles Rivkin unveiled a new Olsberg SPI study, joined by Rep. Brian Jack (R-GA), Rep. Laura Friedman (D-CA), the DGA's Thomas Schlamme, IATSE's Matthew D. Loeb, Teamsters leader Sean M. O'Brien and SAG-AFTRA's Sean Astin.
Why the Study's Numbers Are Turning Heads
The Olsberg SPI study, commissioned by the Motion Picture Association, projects that a 20% federal transferable tax credit could generate $249.1 billion in gross value-added contribution and $133.1 billion in additional labor income from 2027 to 2035, alongside $125.3 billion in additional production expenditures. Both Deadline and the Los Angeles Daily News report the model assumes an annual average of 143,500 full-time-equivalent jobs supported across the country. The Daily News stresses that no formal government proposal exists yet, describing the model as an illustrative scenario based on a publicly reported industry proposal, and notes U.S. spending would total about $277.5 billion with the incentive versus roughly $152.2 billion without it.
The Runaway Production Problem It Targets
According to Deadline, Rep. Laura Friedman framed the stakes bluntly: "Sixty-five countries have decided it's worth competing for film and television production. The United States hasn't, and too many Americans have lost their jobs because of it." The Daily News reports 39 states operated active film and TV incentive programs as of August, but the U.S. has no national incentive, while 65 countries do — citing Canada and Australia, where national and sub-national incentives can be combined. The study's model assumes that without action, the U.S. share of feature-film production spending falls to 25% and TV to 29% by 2035, but rises to 65% with a credit in place.
What the Proposed Credit Would Look Like
Per Deadline, the legislation currently being drafted calls for a 20% transferable tax credit with additional 5% uplifts for labor costs in FEMA-declared disaster areas and for independent production companies, with a $1 million minimum spend. The push accelerated after President Trump's August social media post backing the measure following discussions with his Hollywood ambassador Jon Voight. Teamsters president Sean M. O'Brien said in the Deadline report that the effort "should not be about party politics," while DGA National Executive Director Russell Hollander called a stackable federal incentive "critical for ensuring that the United States remains a competitive marketplace for production."
Timing and Caveats Before the Midterms
Deadline reports organizers hoped to introduce a bill this month, but with few legislative days left before the midterms, timing is an issue — hence the urgency of Tuesday's launch. The Daily News notes the projections carry stated limitations: the model does not account for future policy or macroeconomic changes, or for other countries strengthening their own incentives in response. It also assumes global production spending grows 3.7% annually and existing state incentives remain unchanged.