A Landmark Moment: The First Federal Film and TV Tax Credit Hits Congress
After decades of talk, a bipartisan group of lawmakers has introduced the first federal film and television tax credit in U.S. history — a move aimed at bringing production jobs back to American soil.
The Motion Picture, Television, and Entertainment Revitalization Act would establish a 20% base tax credit on labor expenses for qualifying productions, with four uplifts that can push the incentive as high as 30%. In the House, the bill is led by Rep. Laura Friedman (D-Calif.), Rep. Nathaniel Moran (R-Texas), Rep. Sanchez (D-Calif.), and Rep. Brian Jack (R-Ga.). An identical Senate bill is being spearheaded by Sen. Adam Schiff (D-Calif.) and Sen. Tim Scott (R-S.C.).
How the Federal Film Tax Credit Would Work
The current text of the legislation sets clear eligibility rules:
- Budget threshold: Only projects with budgets over $1 million qualify.
- Domestic filming requirement: At least 75% of filming must occur in the United States.
- Four uplifts to 30%: Productions can earn a bigger credit by going independent, filming in “opportunity zones” or disaster-impacted regions, shooting in 10 or more locations across the country, or shifting production back from overseas.
- Stackable with state incentives: The federal credit can layer on top of individual state tax incentives — the same model Canada and Australia use to attract productions.
- Postproduction and VFX count: Post and VFX labor costs are eligible expenses, which is big news for creators in those lanes.
Not everything qualifies. News programs, talk shows, soap operas, live sports, social media videos, commercials, and corporate videos are all carved out of the credit.
Why Now: The Unlikely Coalition Behind the Bill
While a federal incentive has been on the industry’s policy wish list for decades, the breakthrough came from an unusual area of common ground between Hollywood and the White House. After President Trump appointed actor Jon Voight as one of his three “special ambassadors” to the industry, Voight brought the tax incentive to Mar-a-Lago as part of a larger policy package aimed at restoring domestic production — and found a receptive ear.
Trump initially favored tariffs over a tax incentive, but his tune changed over the summer. On August 31, he posted on social media: “I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America.” Republicans who had been quietly supportive then went public with their endorsement, leading to the bipartisan introduction.
Sen. Schiff has been working on some version of this idea for 20 to 25 years, dating back to his time in the House. “For years, I’ve been championing a federal film tax credit to stop the exodus of TV and film production leaving the United States for countries offering higher incentives,” he said. “Now, we have the best opportunity in decades to get it done.”
Sen. Scott, his partner across the aisle, added: “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.”
Rep. Moran framed the stakes in terms of the small businesses that orbit every production — catering companies, hardware stores, hotels. “Those jobs are going overseas right now simply because other countries are offering bigger handouts,” he said. “If we want to keep American storytelling in America, we have to level the playing field.”
Rep. Friedman, who represents an L.A. district stretching from Hollywood through Burbank, said she’d spent over a year building a coalition of unions, studios, both parties, and the White House. “This bill is a result of that coalition. It tells every country that has been outbidding us for American work that we are done losing.”
The Stakes: 100,000+ Jobs Lost Since 2022
If passed, the legislation could offer a lifeline to workers rocked by recent turbulence. Runaway production, strikes, and a broader contraction in the business have tanked job opportunities — the U.S. Bureau of Labor Statistics found that jobs in the motion picture and video industries have declined by more than 100,000 since 2022.
Schiff also signaled this is just the beginning. “I don’t anticipate further changes with this bill, but we’re going to need to continue working on helping workers in this industry because there are a lot of other pressures on the industry as a result of changes in technology and mergers,” he said. “I’m hoping that the partnership that we have built around this bill, once we’re successful with it, will continue so that we can address other issues as well.”
What the Federal Tax Credit Means for Creators and Crew
Here’s why this matters for you:
More productions stay — or come back — stateside. That’s more casting calls, more crew gigs, and more postproduction work happening here instead of abroad. When a production decides where to shoot, a 20-30% labor credit changes the math fast.
Independent projects get an extra boost. One of the uplifts specifically rewards independent productions, which are the lifeblood of emerging talent and first-time filmmakers.
Postproduction and VFX are included. Editors, colorists, VFX artists, and motion designers — your work counts as eligible labor under the bill. That’s a direct win.
Opportunity zones and multi-location shoots open new markets. Productions filming in economically distressed areas or across 10+ locations get bigger credits, which means casting and crew calls in places that haven’t traditionally seen production traffic.
How Project Casting Fits In
When productions come back to the U.S., they need talent — fast. That’s exactly what Project Casting is built for: connecting productions with vetted creators, actors, and crew for TV, film, advertising, and branded content.
If the federal credit passes, expect a wave of new productions scouting American talent. The creators who are already on the platform — with complete profiles, reels, and portfolios — will be the first ones productions find.
Don’t wait for the bill to pass to get positioned. Create your free Project Casting profile today and start applying to casting calls in your area. When the work comes back, be the one who gets the call.
Based on reporting by Katie Kilkenny for The Hollywood Reporter.
