President Donald Trump called on Congress on Tuesday, Sept. 1, 2026, to create a federal tax credit for film and television production. The proposal, which Trump named the Motion Picture, Television and Entertainment Revitalization Act, seeks to incentivize domestic filming and retain entertainment industry jobs within the United States. The move follows a meeting on Monday between the president and actor Jon Voight, whom Trump previously appointed as a special ambassador to Hollywood.
The proposal comes as industry figures report a decline in domestic production. According to June data from Variety, the U.S. has lost 73,000 production jobs since 2022, with two-thirds of those losses occurring in the Los Angeles area. Studios and labor unions have cited production incentives in countries like Canada, Australia, and the United Kingdom as a reason for the shift of projects overseas.
Specific legislative details are currently under discussion. Producer Scott Karol, an adviser to Voight, stated that a bill could be introduced this month, potentially within two weeks. The proposed framework reportedly includes a 20% tax credit for labor costs and may require a high percentage of U.S. personnel on participating projects. Senator Adam Schiff (D-Calif.) has previously proposed a 15% credit, and on Tuesday, he expressed support for the president's call, stating that Congress should immediately pass an incentive to bring back lost jobs.
Workers and business owners in the entertainment sector would notice the impact through an increase in local filming activity and job availability, potentially reversing the trend of productions moving to international locations. In states like Georgia and California, these federal incentives would stack on top of existing state-level programs, such as California’s $750 million annual tax credit fund. The impact on local economies would be seen in demand for hospitality, catering, and construction services tied to film sets.
The introduction of such a credit would set a precedent for federal intervention in an industry that has traditionally relied on state-by-state competition. While the proposal has bipartisan support from members representing production-heavy states, it faces potential opposition in a divided Congress over federal deficit concerns. Representative Rich McCormick (R-Ga.) noted that he remains wary of federal subsidies during a period of 30% deficit spending. The House Ways and Means Committee is expected to handle the policy, with some supporters aiming for a vote or inclusion in a broader tax package by the end of 2026.