Bipartisan Bill Would Create a Federal Film and TV Tax Credit

A bipartisan group of lawmakers has introduced legislation to create a federal tax credit for film and television production, an effort aimed at slowing the flow of shoots to countries with generous incentives. The Motion Picture, Television, and Entertainment Revitalization Act was unveiled on September 24, 2026, by Senators Tim Scott, a South Carolina Republican, and Adam Schiff, a California Democrat.

In the House, the bill is sponsored by Representatives Nathaniel Moran of Texas, Linda Sanchez of California, Brian Jack of Georgia and Laura Friedman of California. The sponsors framed the measure as a way to keep production, and the jobs that come with it, inside the United States while competing with foreign tax breaks that have drawn shoots overseas for years.

How the credit would work

Under the proposal, qualified film and television productions would receive a 20 percent base tax credit on qualified compensation, tied to labor-based services performed in the United States. To qualify, a production would need a total cost above one million dollars and at least 75 percent of its principal photography days spent within the country.

The bill would add a set of 5 percent bonus credits that could raise the total to as much as 30 percent. Those bonuses would apply to productions shooting in rural opportunity zones or federally declared disaster areas, to independent productions, to multi-state producers who shoot at least half of a project in ten or more states and spend at least ten million dollars on qualified compensation, and to producers who increase their number of domestic productions relative to a historical foreign baseline.

The credit would also be available for traditional post-production and visual effects work, provided that at least 75 percent of the relevant costs are incurred in the United States. Productions that qualify in both categories could add the amounts together. The measure is designed to supplement state incentives, not replace them, so states that already offer credits could stack the federal benefit on top.

Exclusions and timing

Several categories would be left out, including news, live sports, talk shows, daytime dramas, social media content, advertising and corporate videos. The bill would reduce a production’s tax basis by the amount of the credit and would allow the credit to be transferred to another taxpayer, a provision meant to help productions that may not have enough tax liability to use it directly.

The amendments would apply to productions beginning in taxable years after December 31, 2026, meaning the earliest projects could claim the credit in the following year. The Treasury Department would be authorized to require reporting and issue rules to carry out the program.

Political backdrop

The push follows years of advocacy for a nationwide credit and picked up momentum after President Donald Trump called on Congress to act. Supporters include figures in the industry who have argued that a federal incentive is needed to match programs in Canada, the United Kingdom and elsewhere that have attracted American productions.

The bill’s fate is uncertain, as tax legislation often moves slowly and its cost must be weighed against other priorities. But the unusual pairing of a South Carolina Republican and a California Democrat, and the backing of lawmakers from several production states, gives the effort a bipartisan footing that similar proposals have sometimes lacked. Whether it becomes law or not, the measure has renewed a long-running debate over how far Washington should go to keep an industry that is culturally central and economically significant at home.

Sources

Office of Senator Adam Schiff, “Sens. Scott, Schiff, Reps. Moran, Sanchez, Jack, Friedman Introduce Bipartisan Bill to Establish a Federal Film Tax Credit” and the bill’s section-by-section summary (September 2026).