A bipartisan group of lawmakers introduced the Motion Picture, Television and Entertainment Revitalization Act on Thursday, September 24, 2026. The legislation proposes a federal tax credit to incentivize film and television production within the United States. The measure is intended to address the movement of entertainment industry jobs to other countries that offer national subsidies.
The bill follows a two-year effort by Hollywood unions and the Motion Picture Association. In August 2026, President Donald Trump expressed support for a federal incentive, and California Governor Gavin Newsom voiced his support for the legislation on Thursday. According to reports cited by the bill's sponsors, the number of global film incentive programs has grown to 121, with 65 countries offering national-level credits. While 39 U.S. states offer their own programs, the U.S. currently has no federal film tax credit.
Under the proposed legislation, qualifying productions would receive a 20% tax credit on domestic labor costs for American workers. Eligible projects include feature films, television pilots, and television seasons with production costs exceeding $1 million, provided at least 75% of principal photography takes place in the U.S. The credit could increase to 30% through "uplifts" for independent productions or projects filming in rural opportunity zones or federally declared disaster areas. The credit would be transferable, allowing producers to sell it if they cannot use the full amount against their federal tax liability.
The proposal would establish a national-level competition against programs in countries like Canada, where Manitoba offers labor credits as high as 65%, and the United Kingdom. Because the federal credit is designed to stack on top of existing state incentives, a production in a state like California—which currently caps its program at $750 million annually—would see a reduction in total labor costs. Industry analysts from Entertainment Partners suggest this could make U.S. filming locations the most subsidized in the world, though the long-term impact on international markets and potential retaliatory subsidies from other nations remains unknown.
The bill is sponsored in the Senate by Sens. Tim Scott (R-SC) and Adam Schiff (D-CA), and in the House by a group including Reps. Nathaniel Moran (R-TX) and Laura Friedman (D-CA). The proposed tax credit is scheduled to apply to productions beginning in taxable years after December 31, 2026. While the bill has gained bipartisan support and backing from major studios like Paramount, it must still proceed through the committee process and floor votes in both chambers of Congress before it can be sent to the president for signature.