Democratic lawmakers have welcomed 
Donald Trump's push for a federal tax credit to keep film and television production in the United States, an idea the president endorsed last week. Industry officials and entertainment experts have also embraced the proposal, giving the president a rare chance at a bipartisan win, The Hill reported. Members of Congress from both parties are drafting a bill that would create a 20% federal film and TV incentive, rising to 30% with bonuses, and sources familiar with the process told Variety it is expected to be introduced this month.
Who is writing the bill? Rep. Nathaniel Moran, a Republican from East Texas, is working on it with Rep. Linda Sanchez, a California Democrat, and both sit on the House Ways and Means Committee, which handles tax legislation, Variety reported. Rep. Laura Friedman, a Burbank Democrat, has also been working on the effort with Rep. Brian Jack, a Republican from the Atlanta suburbs. The Motion Picture Association and entertainment unions have spent the past year advocating for an incentive to rival subsidies in the UK, Canada, Australia and elsewhere, and Trump threw his weight behind the idea in a Truth Social post on Aug. 31.
What would it offer? The draft broadly aligns with the MPA's request, with a base credit of 20% of all labor costs for films, scripted TV, reality TV and animation but not news or sports broadcasts, Variety reported. Producers could add five percent for each of up to two of four "uplifts" — filming in a rural opportunity zone, making an independent production, bringing a certain amount of filming back from abroad, or spending at least $10 million in 10 states in a year. Stacked on state incentives, the credit could bring total subsidies to 60% or more depending on where productions film. A disaster-zone bonus sought by California lawmakers is not in the latest draft.
What happens next? Some supporters hope to pass the measure in a tax bill during the lame-duck session after the November election, though next year may be likelier, and Friedman said in an interview last week that she "would be very happy for it to happen in the lame duck" but could not promise it. She said the discussions gained momentum after Trump got involved. The bill has yet to be scored by the Joint Committee on Taxation, and Trump said in his post that the cost would be "made up tenfold by the money pouring into the Treasury's coffers."
Figures referenced: Donald Trump. — JudgeMarket.
