As Federal lawmakers are hard at work crafting a bill to provide substantial tax credits for production costs incurred in making movies, streaming and TV series with labor and resources within the United States, the industry is trying to help quantify the potential impact this legislation could have on the U.S. economy. According a to new report commissioned by the Motion Picture Association, a 20% federal film tax credit would result in a net increase of $250 billion in economic activity from 2027-2035, creating 143,500 full-time equivalent jobs. The report assumes that the new credit would cause 65% of global production to take place in the U.S. by 2030, and that without the credit only 25% would be retained as production continues to migrate outside the U.S.
MPA Chairman and CEO Charles Rivkin is characterizing the new legislation as a potential “game changer” for the movie industry and America, without any partisan slant as it would spur jobs and economic activity in all 50 states. Legislators from both sides of the aisle are lining up to co-sponsor the bill and participate in its drafting, while President Trump has also indicated his support for the effort. The only trick is the legislative calendar, which does not contain many days with Congress in session before the November elections. Senators and Representatives may become too preoccupied with politics and other pressing matters to devote the time to bring the new bill over the finish line. However, some reports suggest that the bi-partisan legislation could be introduced in Congress as early as this week.
