Motion Picture Association Pushes for Federal Film Tax Incentives

The Motion Picture Association and a newly formed coalition of Hollywood unions and industry figures are lobbying for a federal film and television tax incentive to combat production losses to the United Kingdom and Australia. A study by Olsberg•SPI commissioned by the association argues that a 20% transferable tax credit on labor expenditures could generate $249.1 billion for the U.S. economy through 2035 and create 143,500 full-time jobs.

The proposal, which includes uplifts for independent productions and disaster areas, has gained the public support of President Donald Trump following discussions with actor Jon Voight. In the House, Representatives Brian Jack and Laura Friedman are leading bipartisan efforts to pass the measure during the lame duck period following the November midterm elections.

These industry claims contrast with a report from the Mackinac Center for Public Policy released on September 14. Author Michael Thom analyzed government reports from 23 states and concluded that state-level incentives frequently result in net losses for taxpayers and fail to create permanent jobs. Thom noted that while assessments vary on the scale of the loss, the trend of negative economic impact remains consistent across the analyzed agencies.