A coalition of California Democrats and union leaders rallied on Tuesday, urging Congress to pass a federal film incentive designed to revitalize the American film and television industry. At a sweltering press conference outside the Alex Theatre in Glendale, Sen. Adam Schiff and eight Democratic representatives from Southern California emphasized the need for decisive action to stem the outflow of production jobs to countries that offer competitive incentives.
Addressing the Global Competition
Schiff highlighted the urgency of the situation, noting that the U.S. must respond to incentives from 65 other countries that have drawn American production jobs overseas. “We are so close to getting this done,” he stated, braving the 100-degree heat. “Whatever we can do to get this done, that is job No. 1. It just can’t wait. It’s too important. The losses so far have been too extraordinary.”
Proposed Tax Credits to Boost the Industry
Last month, lawmakers introduced a bill proposing a transferable tax credit ranging from 20% to 30% for U.S. labor costs on films and television shows. Schiff reported that the coalition now includes 12 senators—six Democrats and six Republicans—with Sens. Thom Tillis (R-N.C.) and Chris Coons (D-Del.) among the latest cosponsors.
The timeline is tight, as lawmakers have roughly five weeks during the lame-duck congressional session after the election to push the measure through. Rep. Laura Friedman, who organized Tuesday’s event, expressed cautious optimism about the bill’s prospects, saying, “We need to have this on the president’s desk by mid-December, as far as I’m concerned.” She added that she hopes the legislation will pass in its current form as part of a broader tax package, detailing the extensive efforts that have gone into this initiative over nearly two years.
Incentives for Disaster Areas and Rural Filming
The proposed legislation includes a 5% bonus for filming in disaster areas—applicable to all of Los Angeles County until January 2030, following last year’s devastating fires. The bill also provides incentives for independent films and projects set in rural opportunity zones. When combined with existing state incentives from places like California and New York, the total tax credit could exceed 50%, greatly surpassing the incentives available in other countries.
Industry Alliance Highlights Erosion of U.S. Production
Duncan Crabtree-Ireland, executive director of SAG-AFTRA, remarked on the need to address the competitive landscape, acknowledging, “It is fair to say that these other countries recognize the quality of these jobs—that’s why they put these measures in place. That’s why they are eating not only our lunch, but our breakfast and our dinner as well. And we have to change that. This is our opportunity to do it.”
A coalition of industry unions recently released a report revealing a significant decline in U.S. production’s share of global spending over the past 25 years. According to the findings, the U.S. share fell from 74% to 42% in film and from 94% to 64% in television, despite substantial growth in both sectors during the same period.
The Administration’s Push for Action
In August, former President Donald Trump echoed the call for Congress to “immediately” implement an incentive, labeling the Hollywood landscape as a “Complete and Total Disaster.”
Broad Support and Immediate Need
The Motion Picture Association (MPA), representing studios, has pointed out that the proposed bill would benefit all 50 states, although they emphasize the need to ensure the legislation is carefully crafted and implemented. Union leaders, however, assert that their members cannot afford to wait any longer for these incentives.
Mike Miller, vice president of IATSE, remarked, “When this passes in this lame-duck session, it will immediately impact production in 2027. And there are hundreds of thousands of entertainment industry workers that are counting on it.”
