Lawmakers Expected To Introduce Bill This Week For Federal Incentive

Lawmakers in both parties are expected to introduce legislation to establish a federal film & TV tax incentive as soon as Thursday, according to sources familiar with the plans.

The introduction of the legislation has been anticipated since President Donald Trump announced his support for such an incentive as a way to lure productions back from other countries.

Last week, the Motion Picture Association hosted a call with industry and labor figures, as well as Jon Voight, who is serving as the president’s ambassador to Hollywood. Those on the call also included Rep. Laura Friedman (D-CA) and Rep. Brian Jack (R-GA), but the bill also is expected to have the support of members of the House Ways & Means Committee. Key backers on the Senate side include Sen. Adam Schiff (D-CA) and Sen. Tim Scott (R-SC).

The incentive is expected to be set at 20%, Schiff said in a recent video outlining the need for such a tax credit. That would be augmented by another five to 10 percent, depending on a variety of facotrs including whether the production takes place in a disaster or economic zone, or if it is an independent production.

“Other countries are still more generous than that in other respects,” Schiff said in the video. “But here’s the thing: this would be stackable with tax credits offered by the state of California, for example. So, a production would enjoy the federal incentive as well as the state incentive. That makes us truly competitive with other countries, and that is great news for this vital American industry.”

Schiff’s video included a clip of Donald Trump, who often attacks Schiff, talking up an incentive.

He also addressed criticism of an incentive. The Wall Street Journal editorial board already has deemed a film and TV incentive as a “handout” to Hollywood.

“These Hollywood stars are going to get paid wherever it’s filmed, whether it’s filmed in Canada or the United States, the UK,” Schiff said. “It doesn’t matter to their bottom line. What it does matter to is a lot of the set designers, and the caterers, and the local dry cleaners and all of the others who are working just to try to provide a good living for their family.”

Given that the House recessed last week, and the Senate is expected to soon, the earliest legislation could be passed is after the midterms, during Congress’ “lame duck” session.

Jill Goldsmith contributed to this report.