Congress Begins Drafting 20% Federal Film Incentive With Trump’s Blessing (EXCLUSIVE)

Members of Congress are drafting legislation that would create a 20% federal film and TV incentive — with bonuses that could bring it as high as 30% — after President Trump endorsed the idea last week. The bill is expected to be introduced this month, and perhaps as soon as the end of next week, according to sources familiar with the process. Nathaniel Moran, a Republican from East Texas, is working on the bill with Rep.

Linda Sanchez, a Democrat from Whittier, Calif. Both serve on the House Ways and Means Committee, which is responsible for tax legislation. Laura Friedman, a Democrat from Burbank, Calif., has also been working with Rep.

Brian Jack, a Republican from the Atlanta suburbs, on the bipartisan effort. For the last year, the Motion Picture Association and entertainment unions have been advocating for an incentive that would compete with generous subsidies from the U.K., Canada, Australia and scores of other countries. Trump threw his weight behind the idea in a Truth Social post on Aug. 31, a development expected to unlock Republican support on Capitol Hill.

The draft legislation broadly aligns with the MPA’s request. The bill would offer a base credit of 20% of all labor costs, both below-the-line and above-the-line. A wide range of productions would be eligible, including reality TV and animation in addition to films and scripted TV shows, according to sources familiar with the legislation.

It would not include news or sports broadcasts. The bill would also include four “uplifts” meant to attract political support. According to a source, the bill would allow producers to claim an additional five percent if they meet one of these four criteria: Producers could claim up to two of those uplifts, for a maximum of 30%.

The federal tax credit would stack on top of state incentives, meaning that productions could see a total subsidy of 60% or more depending on where they film. Supporters have argued that the incentive will not just help Los Angeles and New York — where the bulk of production takes place — but will also boost rural areas that currently have little filming and little or no state tax incentive. The hope is that spreading production around will broaden support, much the way the state incentives in California and New York attracted votes from rural lawmakers by offering a bonus for filming outside of Los Angeles and New York City, respectively.