Push for Federal Film Incentive to Revitalize American Film Industry

The American film and television industry plays a critical role in the national economy. Historic studios, along with skilled professionals and behind-the-scenes workers, collaborate to create globally acclaimed films and shows.

While occasionally on opposing sides, industry representatives agree on one goal: to sustain and expand a flourishing American film and television sector. They aim to create quality jobs and enhance local communities across the country. With this unified vision, they urge Congress to implement a federal film incentive this year to safeguard American jobs and maintain the nation’s leadership in visual storytelling.

Each year, the film and TV sector generates more than 2 million jobs nationwide. This includes roles that support over 162,000 businesses across all states. The industry pays over $200 billion in wages annually, with the U.S. holding a trade surplus with nearly every country.

“When asked what the U.S. excels at globally, Americans named movies and TV as the top answer, above tech or finance.”

Filmmaking and television production contribute economically across the U.S. from the plains of Montana to Hawaii’s coastlines. States have introduced tax incentive programs, making local filming more appealing. On average, a feature film adds $22 million to the local economy, while a TV series provides employment for approximately 1,800 workers per season.

Congress faces a crucial opportunity to enhance this success by passing a federal tax incentive that will drive production and support workers in every state. There is bipartisan recognition that other countries offer similar incentives, leading to a decline in the U.S.’s share of global production to 39% from a historical 65%. This decline affects soundstage activity, job stability and good-paying American jobs nationwide.

Implementing a federal film tax incentive could restore production dominance. A recent study suggests regaining the 65% global market share could inject $250 billion into local economies and generate over 143,000 new jobs annually. A separate analysis shows such a program could make 80% of projects competitively viable to shoot domestically.

States like Georgia and Texas have demonstrated the quick return on investment that tax incentives bring. Georgia’s film tax credit reportedly delivers a 6.3-to-1 return, while Texas sees an economic increase of $4.50 per dollar invested in incentives.

The federal government already supports key industries with targeted incentives, such as pharmaceuticals and aerospace. The entertainment sector, given its significant contribution to national culture and economy, deserves the same support. Research indicates foreign audiences, exposed to American-made media, are more inclined to visit, engage with, and purchase American products.

“Congress should take immediate steps to approve a Federal Production Incentive, reinforcing the creation of Entertainment Jobs in America.”

Leaders across the political spectrum have introduced the Motion Picture, Television, and Entertainment Revitalization Act in Congress. This initiative is backed by numerous sponsors, reflecting a wide range of bipartisan support.

For over a century, America has been at the forefront of film and TV production, integral to its national identity. Protecting this leadership is crucial, and Congress must act to ensure that industry workers can continue contributing to this vital sector. Charles Rivkin, Chairman and CEO of the Motion Picture Association, emphasizes this in urging Congress to act swiftly.