A bipartisan group of lawmakers introduced the Motion Picture, Television, and Entertainment Revitalization Act on September 24, 2026, proposing the first federal tax credit for film and television production in the United States. The bill offers a 20% base credit on American labor costs, with bonus credits that can push the total to 30%. The credit would stack on top of existing state incentives, potentially making U.S. filming locations among the most competitive in the world.
Who Is Behind the Bill
The Senate version is led by Sens. Tim Scott (R-S.C.) and Adam Schiff (D-Calif.). The identical House bill is led by Reps. Nathaniel Moran (R-Texas), Linda Sánchez (D-Calif.), Laura Friedman (D-Calif.), Brian Jack (R-Ga.), David Kustoff (R-Tenn.), Judy Chu (D-Calif.), Mike Carey (R-Ohio), and Tom Suozzi (D-N.Y.).
The effort follows a call from President Donald Trump, who backed a federal production incentive in August 2026. Actor Jon Voight, one of Trump’s “special ambassadors” to Hollywood, has also supported the push.
What Productions Qualify
To be eligible, a film or TV production must have a minimum spend of $1 million per film or per TV season. At least 75% of production days must take place in the United States. For animation, 75% of the production cost must be incurred domestically.
The bill covers a wide range of content, including:
- Feature films
- TV shows, both scripted and unscripted, with a four-episode minimum
- TV pilots
- Animation
- Pre-production and post-production
- Above-the-line wages for producers, writers, directors, and actors
- Below-the-line wages for crew
- Standalone post-production and visual effects work
Productions can also transfer the credit if they do not owe enough in taxes, making it usable by independent producers and not just major studios.
What Is Excluded
Several categories do not qualify for the credit:
- Porn
- Commercials
- Talk shows, interview shows, game shows, and award shows
- News programming
- Live sports
- Daytime dramas
- Corporate and industrial videos
- Social media videos
- Non-labor expenses
- Non-U.S. labor
- Backend compensation such as residuals and profit participation
Bonus Credits That Raise the Total to 30%
The bill includes 5% uplifts that can be stacked on the base 20% credit, up to a maximum of 30%. The bonuses apply to:
- Filming in a rural opportunity zone or a federal disaster area (with a five-year limit on disaster designations)
- Independent productions
- Spending at least $10 million in 10 states in a year
- Increasing domestic production relative to overseas production
Because Los Angeles County was declared a federal disaster area in 2025 after the Palisades and Eaton fires, productions filming there would qualify for the disaster bonus through January 2030.
Stacking With State Incentives
A key feature of the bill is that the federal credit would stack on top of state incentives without reducing qualified spend. This means a production filming in a state with a generous program could combine both credits, pushing the total subsidy into the 50% range in some states.
Joe Chianese, senior vice president for incentives at Entertainment Partners, said the combined effect would be significant. “If it passes and it stacks clean, shooting in Georgia or California or New York is the best deal on the planet,” he said. “Nothing overseas comes close”.
Support From Industry and Unions
Several industry groups and unions have backed the bill, including the Producers Guild of America, the Directors Guild of America, and the International Alliance of Theatrical Stage Employees (IATSE). SAG-AFTRA President Sean Astin said the bipartisan support gives him hope. “We will, at long last, get a federal tax incentive that will make us competitive with the rest of the world,” he said.
A report from Olsberg SPI released by the Motion Picture Association estimated that a 20% federal credit could create 143,500 full-time equivalent jobs annually and add more than $125 billion in domestic production expenditures over the next decade.
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The bill has been introduced but has not yet received a cost estimate. The House is out of session until after the November election. Supporters are aiming to attach the measure to a larger tax bill during the lame-duck session at the end of the year.
“Windows of opportunity to pass legislation open and close very quickly,” said Rep. Linda Sánchez at a press conference. “You have to really strike while the iron is hot”.
The credit is proposed to be effective for productions after December 31, 2026.
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