Call for Federal Film Incentive to Support U.S. Film Industry

The American film and television industry represents a major sector of the nation’s economy, engaging millions of people in various roles across the country. Various stakeholders within the industry, including studios and representatives of behind-the-scenes workforce, are urging Congress to pass a long-overdue federal film incentive this year to protect American jobs and ensure continued leadership in global visual storytelling.

The Economic Impact of Film and TV Industry

Traditionally, the film and TV industry has been a powerful economic engine, generating over 2 million jobs nationwide each year. It impacts more than 162,000 businesses across all 50 states, paying over $200 billion in wages annually. With a trade surplus with nearly every country in the world, the industry contributes significantly to the U.S. economy.

A national survey found movies and TV were America’s top recognized contributions in comparison to other industries such as tech, finance, music, and sports.

Importance of National Film Locations

The industry benefits from diverse American locations, from Montana’s skies to Hawaii’s waters, enhancing its appeal. Many states have established effective tax incentive programs, making local shoots more competitive. A feature film typically adds $22 million to the local economy, while a TV series can employ around 1,800 workers per season.

Need for Federal Film Tax Incentive

Congress is urged to introduce a nationwide tax incentive to bolster production across all states. With over 120 global jurisdictions offering incentives, the U.S. share of global production has reduced from a historical 65% to 39%. This decline results in decreased employment opportunities and production activities.

A federal film tax incentive could reclaim leadership in global production. Studies suggest returning to its historical share would add $250 billion to the local economies and create over 143,000 additional jobs annually.

One study highlights Georgia’s film tax credit delivers a return of 6.3-to-1 by generating new economic activity.

Strategic Support for Film Industry

Similar to strategic support for sectors like pharma and aerospace, the film and television industry warrants targeted incentives to sustain American jobs. Research underscores the positive impacts of American-made media on global audiences, including increased interest in visiting the U.S., buying American products, and engaging with American culture.

President Donald Trump has advocated for Congress to approve a Federal Production Incentive to create entertainment jobs in America, reflecting the importance of supporting the industry. Bipartisan efforts, including the Motion Picture, Television, and Entertainment Revitalization Act introduced by congressional allies, aim to support this cause.

The U.S. film and television industry has been integral to American identity for over a century, carrying stories and innovations worldwide. To preserve its leadership, Congress is encouraged to enact measures ensuring the industry continues to thrive and employs American workers.