President Donald Trump is urging Congress to pass a federal tax incentive for film and television production, and he’s finding an unlikely ally in Sen. Adam Schiff (D-CA), who has been sounding the alarm on Hollywood’s decline for months.
Trump made the call in a Truth Social post on Monday, asking lawmakers from both parties to move quickly on legislation.
“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America,” he wrote. “Congress should approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America. It can be done quickly, accurately, efficiently and, importantly, will benefit ALL of America.”
“What we watch on the Silver Screen should be made in what was once the Movie and Motion Picture Capital of the World. Let’s get this done!” he added.
The proposal follows Trump’s threat last year to slap a 100% tariff on films made overseas, a move that pushed industry figures to lobby instead for tax credits competitive with those offered by Canada and the United Kingdom.
The scale of the problem
Schiff laid out the extent of the decline at a Burbank City Hall meeting, noting that roughly 45 percent of all U.S. films and scripted television shows are now shot abroad, up sharply from 33 percent in 2022 — a 12-point jump in just a few years.
He said the shift has cost more than 42,000 jobs, along with the livelihoods and careers that went with them, as productions are “lured abroad” by foreign governments that have aggressively built out their own film industries.
Schiff credited California’s own incentive programs but argued they aren’t enough on their own.
“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” Schiff said. “The urgency could not be greater.”
After Trump’s post, Schiff responded on X with his support.
“I am in strong agreement with the President. Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries. Let’s work together — Republicans and Democrats — to get this done, and bring the movie magic back to America,” he said.
Industry and Congress weigh in
Rep. Laura Friedman, a Democrat representing Burbank, also backed the push, pointing to more than a year of work already underway.
“I agree that our tax incentive legislation needs to pass – and to pass quickly,” Friedman said. “For more than a year I’ve been sitting down with Jon Voight, Congressional colleagues, the unions, studios, and producers to build the case for a national film and television tax credit. There’s no reason Canada, the UK, or Australia should be taking our jobs. We still have the best crews on the planet. It’s time we made it possible for them to stay where they belong: in America.”
Industry leaders have similarly voiced support. Joe Chianese, senior vice president at Entertainment Partners, said a federal incentive would help beyond just California.
“Theoretically, it just makes a lot of sense,” Chianese said. “If it were to happen, it would definitely help not just California, but U.S. production in general.”
According to Variety, a federal incentive would give studios and producers a credit or rebate on a percentage of production costs, likely stacking on top of existing state-level credits in California, New York, Georgia, New Jersey and elsewhere. Roughly 80 countries have adopted similar incentives, and rival production hubs have flourished in Central and Eastern Europe, Australia, and South Africa as a result.
