Hollywood Unions Push Federal Film Tax Credit as U.S. Studio TV Spending Plummets
A group of Hollywood unions is calling on Congress to implement a federal film tax credit, spurred by findings from EY Quantitative Economics and Statistics that indicate a drop in U.S. production expenditures. Between 1999 and 2024, the proportion of major-studio TV spending in the U.S. decreased from 94% to 64%, while film production expenses fell from 74% to 42%. Additionally, the workforce for U.S. studio productions has seen a nearly 30% reduction. The Motion Picture, Television and Entertainment Revitalization Act, introduced last month, suggests a 20% tax credit for eligible productions using U.S. labor, which could increase to 30%. This initiative is championed by Reps. Nathaniel Moran, Linda Sánchez, Brian Jack, Laura Friedman, and Sens. Tim Scott and Adam Schiff, with a Congressional vote anticipated after the November midterm elections.
Key facts
- U.S. share of major-studio TV episode spending fell from 94% to 64% between 1999 and 2024.
- U.S. share of major-studio film production spending fell from 74% to 42% over the same period.
- Total cast and crew on major U.S. studio TV episodes and movies filmed in the U.S. each declined nearly 30% between 1999 and 2024.
- The study was conducted by EY Quantitative Economics and Statistics for seven entertainment industry unions.
- The Motion Picture, Television and Entertainment Revitalization Act proposes a 20% tax credit on U.S. labor for eligible film and TV productions.
- The credit could increase to 30% with uplifts, including a 5% bonus for independent productions or those filming at least 30% of principal photography days in a rural qualified opportunity zone or federally declared disaster area.
- The bill is led by Reps. Nathaniel Moran, Linda Sánchez, Brian Jack, Laura Friedman, and Sens. Tim Scott and Adam Schiff.
- An earlier Motion Picture Assn. study estimated a federal tax credit could boost U.S. production spending by $125 billion and add over 143,000 jobs by 2035.
- Congress is not expected to vote on the measure until after the November midterm election.
Entities
Artists
- Rebecca Rhine
- Nathaniel Moran
- Linda Sánchez
- Brian Jack
- Laura Friedman
- Tim Scott
- Adam Schiff
- Samantha Masunaga
Institutions
- Directors Guild of America
- International Alliance of Theatrical Stage Employees
- Screen Actors Guild-American Federation of Television and Radio Artists
- Writers Guild of America
- EY Quantitative Economics and Statistics
- Motion Picture Assn.
- U.S. Congress
- House of Representatives
- Senate
- Los Angeles Times
Locations
- Los Angeles
- United States
- Washington
- Texas
- Whittier
- Georgia
- Glendale
- South Carolina
- California