A bipartisan group of lawmakers introduced legislation Thursday aiming to boost domestic film production by offering federal tax credits for film and television projects made in the United States. The bill, called the Motion Picture, Television and Entertainment Revitalization Act, would create a 20% tax credit on U.S. labor for film and TV productions, including post-production and visual effects work.
The credit could increase up to 30% for productions meeting certain criteria, including independent productions and projects filming at least 30% of their principal photography days in a rural qualified opportunity zone or federally declared disaster area. Since L.A. County has been declared a disaster zone, production filmed locally could qualify for that bonus credit.
A film industry-commissioned study cited by supporters of the bill projected that a federal incentive would create 143,500 full-time equivalent jobs annually across the country.
According to the proposed bill, feature films, TV shows and TV pilots would qualify for the tax credit if their total cost is more than $1 million and 75% of the principal filming days occur in the U.S. Other video content such as live sports, daytime dramas, talk shows, news, social media content and advertising and corporate videos are not eligible for tax credits.
The effort is being led on the Senate side by Sens. Tim Scott (R-S.C.) and Adam Schiff (D-Calif.) and on the House side by Reps. Nathaniel Moran (R-Texas), Linda Sánchez (D-Whittier), Brian Jack (R-Ga.) and Laura Friedman (D-Glendale). L.A. Mayor Karen Bass has also voiced her support for the work being done in Congress.
“Today, we’re seeing the results of the continued advocacy in Washington with the introduction of the federal film and television tax credit bill,” Bass said in a statement. “While I’ve worked aggressively with labor and entertainment industry leaders to expand state-level tax incentives and reduce filming fees locally, a federal tax credit is needed so local incentives remain competitive with countries who offer larger benefits that have drawn productions out of the United States.”
Locally in L.A., Bass has overseen similar tax credit initiatives to keep film production in Hollywood, including the doubling of the existing Film and TV Tax Credit Program to $750 million. Other initiatives include slashing filming fees at the Griffith Observatory, reopening the Central Library for filming, speeding up the review time for film applications at the Port of Los Angeles, extended staffing hours from the L.A. Department of Transportation for street closures and signage changes to aid production and the restoration of filming at the Sixth Street Bridge.
“I want to recognize the Motion Picture Association, our entertainment labor unions, and industry partners who have led this effort in Washington and worked closely with my Office to build support and momentum for this legislation,” Bass said in a statement. “I will do everything in my power to ensure this bill is passed into law.”
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