A federal film and television tax credit could boost U.S. production spending by $125 billion and add more than 143,000 jobs by 2035, according to a new study commissioned by the Motion Picture Assn.
The analysis, released Tuesday morning, is expected to bolster Hollywood’s push for a federal production incentive, which the industry says is necessary to compete with the generous credits offered abroad. Sixty-five nations now offer them, the study said.
The effort has been quietly building for more than a year. It got a major boost last month when President Trump posted on Truth Social backing a proposed credit.
Details are still being worked out,, but the study assumed a transferable credit with a minimum rate of 20% on qualified spending for U.S. resident labor — broadly what industry groups have supported. It also assumed add-ons of 5% for independent production companies and 5% for labor costs in areas the Federal Emergency Management Agency has declared disasters.
If the incentive took effect Jan. 1, 2027, U.S. production spending would reach $277.5 billion through 2035, the study said, compared with $152.2 billion without it.
A coalition that includes the Motion Picture Assn., industry unions, producers’ groups and small production businesses, along with Democratic and Republican lawmakers, is expected to press the case at a virtual news conference Tuesday.
“A federal incentive would be a gamechanger for our industry,” Charles Rivkin, chairman and chief executive of the Motion Picture Assn., said in a statement. “This study tells us that we can bring more opportunities to life for people in all 50 states who bring great stories to life.”
