US Lawmakers Propose 20-30% Federal Film Incentive to Boost Hollywood Production
- A bipartisan group of lawmakers unveiled federal legislation on September 24, 2026, that would create a 20% to 30% U.S.
- The legislation is the product of a two-year effort involving Hollywood unions and the Motion Picture Association, which lobbies on behalf of major studios.
- Lawmakers introduced the bill to counter generous subsidies offered in the United Kingdom, Canada, and 63 other countries.
A bipartisan group of lawmakers unveiled federal legislation on September 24, 2026, that would create a 20% to 30% U.S. film incentive in an effort to secure American dominance in entertainment production. The proposed incentive would stack on top of existing state tax credits to create what supporters describe as the world’s most generous subsidies for film and television.
Legislative Details and Subsidies
The legislation is the product of a two-year effort involving Hollywood unions and the Motion Picture Association, which lobbies on behalf of major studios. Joe Chianese, senior vice president for incentives at Entertainment Partners, noted the financial impact of the proposed setup. If it passes and it stacks clean, shooting in Georgia or California or New York is the best deal on the planet,
Chianese said, adding that nothing overseas comes close.
Industry Pressures and Economic Goals
Lawmakers introduced the bill to counter generous subsidies offered in the United Kingdom, Canada, and 63 other countries. A historic slump in production has cost more than 50,000 jobs in Los Angeles alone over the past four years.
If we want to keep American storytelling in America, we have to level the playing field, and that’s exactly what this bill does,
said Rep. Nathaniel Moran, R-Texas, one of the bill’s sponsors. This isn’t about subsidizing Hollywood — it’s about supporting the American worker, one story and one production at a time.
The Motion Picture Association released a study finding that a federal incentive would double the nation’s $20 billion film and TV production industry by 2032 while creating approximately 143,500 jobs. Sen. Tim Scott, R-S.C., emphasized the national scope of the issue. We cannot stand by as more and more American film production moves overseas, taking jobs, investment, and an important source of American cultural influence with it,
Scott said.
Sen. Adam Schiff, D-Calif., stated that he has pushed for years for a federal incentive to halt the exodus of jobs overseas. Now, we have the best opportunity in decades to get it done,
Schiff said.
International and Regional Responses
Several states already offer tax incentives of 30% or more, while California weighs whether to increase its state incentive, which sits at 35% to 45% with a $750 million annual cap. Meanwhile, international jurisdictions with established tax credits are evaluating the potential legislation. Manitoba currently offers an incentive on below-the-line labor reaching up to 65%. Lynne Skromeda, Manitoba’s film commissioner, said it remains unclear how much of an impact a U.S. credit would have on the province. The devil is in the details,
Skromeda said, noting that local producers calculate Manitoba would still maintain an advantage due to the currency exchange rate.
Entertainment Partners executive Joe Chianese also noted that international reactions remain uncertain. There’s going to be some response,
Chianese said. You have to imagine that the UK and Canada are going to do what they can to protect the industry they have.