Backers of U.S. Film Incentive See Window to Pass Bill This Year

Supporters of a federal film incentive are preparing an all-out push to pass the legislation by the end of the year, looking to take advantage of momentum before Congress potentially changes hands next term.

A bipartisan group of senators and representatives unveiled the bill on Thursday. It would provide a 20%-30% federal incentive for films and TV shows that would stack on top of state incentives, instantly making states like California, Georgia and New York among the world’s most generous film locations.

“Windows of opportunity to pass legislation open and close very quickly,” said Rep. Linda Sanchez, D-Calif., at a press conference on Thursday. “You have to really strike while the iron is hot.”

The House of Representatives is out of session, and will not return until after the November election. But lawmakers expect that the lame-duck session will include a significant tax bill, into which the U.S. film incentive could be incorporated.

“It is the goal and it is realistic,” said Nathaniel Moran, R-Texas, in an interview. “When the right opportunity strikes, you’ve gotta jump at the opportunity. The stars have aligned where we have bicameral, bipartisan support, and we have a president who is very supportive of this.”

The bill introduced on Thursday has yet to get a cost estimate. As proposed, the incentive would cover a wide range of productions, including animation and reality shows. It would also cover salaries for actors and other above-the-line talent. A separate visual effects and postproduction credit would also apply to projects that are filmed abroad but completed domestically.

Asked whether the bill is a starting point for negotiations, or whether it may pass in something close to its current form, Moran said that time will tell.

“There is a long way to go,” he said. “One of the things that’s important is to get a score on the bill, to look for pay-fors that might offset any cost associated with the bill … Whether or not it changes a little bit or a lot will be determined by the feedback we get.”

The proposal includes a benefit for rural areas like Moran’s district — a 5% bonus for rural “opportunity zones” — as well as something for Los Angeles, in the form of a 5% bonus for filming in a federal disaster zone. (Due to last year’s fires, L.A. County qualifies through January 2030.)

“It was important for me to have that in there,” said Rep. Laura Friedman, D-Calif. “Film is very unique in terms of its ability to stand up a lot of jobs quickly.”

As written, the credit would stack on top of state-based incentives — with no reduction in qualified spend due to state credits — which would push the total subsidy into the 50% range in several states.

“The state tax incentives are separate and apart from the tax incentives here,” Moran said. “We see this as an additional incentive for the companies to benefit from to stay here.”

Sen. Adam Schiff, a Democratic sponsor of the bill, said he is eager to get it done this year, rather than let the momentum flag.

“The iron is very hot right now,” he said. “We’re all very focused on this, the president is focused on this. I wouldn’t want to see that bleed into next year.”

Still, Friedman cautioned, it’s not a sure thing.

“There’s a lot that has to happen for that to be a reality,” she said.