A coalition of bipartisan lawmakers is launching an urgent campaign to enact a federal film incentive bill before the end of the year. The initiative aims to secure passage while political support remains strong, ahead of potential shifts in Congress following the upcoming midterm elections.
During a press conference on Thursday, the senators and representatives behind the proposal highlighted the time-sensitive nature of their efforts. Rep. Linda Sanchez, a Democrat from California, emphasized the fleeting nature of legislative opportunities. “Windows of opportunity to pass legislation open and close very quickly,” Sanchez stated. “You have to really strike while the iron is hot.”
The proposed legislation would establish a federal tax credit ranging from 20% to 30% for qualifying film and television productions. This incentive is designed to layer on top of existing state-level programs, potentially transforming states such as California, Georgia, and New York into some of the most competitive filming locations globally.
Rep. Nathaniel Moran, a Republican from Texas, expressed confidence that the bill could succeed despite the House currently being in recess until after the November elections. He noted that a major tax package is expected during the lame-duck session, providing a vehicle for the film incentive to be incorporated.
“It is the goal and it is realistic,” Moran said. “The stars have aligned where we have bicameral, bipartisan support, and we have a president who is very supportive of this.”
The bill covers a broad spectrum of production types, including animation and reality television, and extends to salaries for above-the-line talent. Additionally, a separate credit is available for visual effects and post-production work on projects shot internationally but finished in the United States.
Specific provisions address regional economic goals. The legislation offers a 5% bonus for productions filmed in rural “opportunity zones,” benefiting districts like Moran’s. It also includes a 5% incentive for filming in federal disaster zones, a provision that would apply to Los Angeles County through January 2030 due to the wildfires the previous year.
Rep. Laura Friedman, a Democrat from California, stressed the economic urgency of the measure. “Film is very unique in terms of its ability to stand up a lot of jobs quickly,” she said, noting the importance of including disaster zone incentives.
While the bill has not yet received an official cost estimate, Moran acknowledged that negotiations lie ahead. Lawmakers plan to seek offsetting revenue sources, or “pay-fors,” to balance the budgetary impact. Moran admitted that the final form of the legislation may change significantly based on feedback from the Congressional Budget Office and other stakeholders.
Wait, so we’re giving tax breaks for filming in disaster zones? That feels a bit tone-deaf given the recent wildfires in LA.
This is exactly what the industry needs to stay competitive globally. Hopefully, it actually passes before the window closes.