Donald Trump Backs Federal Film and Television Tax Credit

President Donald Trump announced his support for a federal film and television production tax incentive, urging Republicans and Democrats to craft legislation to save the American entertainment business. The shift in administration policy follows lobbying efforts by actor Jon Voight, serving as Special Ambassador to Hollywood, and production partners who moved the White House away from considering tariffs on overseas productions toward supporting a tax credit.

A study commissioned by the Motion Picture Association and developed by Olsberg SPI suggests a 20% federal tax credit for U.S. resident labor could add over 143,000 annual jobs and increase domestic production spending by $125 billion by 2035. The proposed model includes additional 5% bonuses for independent production companies and labor in FEMA-declared disaster areas. Proponents argue the measure is necessary to make the U.S. competitive with 65 other nations that offer similar national incentives.

Bipartisan efforts are currently underway in the House of Representatives, led by Representatives Laura Friedman and Brian Jack. The coalition aims to introduce the bill to the House Ways & Means Committee by the end of September to prevent further industry migration to other countries. If enacted by January 1, 2027, the study predicts U.S. production spending would reach $277.5 billion by 2035, compared to $152.2 billion without the incentive.