Trump Backs U.S. Tax Incentives to Keep Hollywood Production Domestic: “Let’s Get This Done!”

According to CinemaDrame News Agency, U.S. President Donald Trump has backed a federal tax incentive program for film and television production—a long-sought move by Hollywood studios and labor unions.

In a statement posted on Truth Social, Trump expressed his commitment to pushing for a bipartisan bill aimed at rescuing the industry.

“I will be suggesting that Republicans and Democrats get together and immediately draft the necessary legislation to SAVE the Movie, Television, and Entertainment Business in the United States,” Trump wrote. “Congress must swiftly pass a Federal Production Incentive to create entertainment jobs right here in America. This can be done quickly, accurately, efficiently, and most importantly, to the benefit of all of America. What we see on the silver screen should be made in the former Film and Cinema Capital of the World. Let’s get this done!”

Since last year, Trump had repeatedly threatened to impose a 100% tariff on foreign-made films. Industry insiders have worked to pivot his focus toward a tax credit—an incentive similar to those offered in Canada, the United Kingdom, and 39 U.S. states.

Several Democratic lawmakers have voiced support for the idea, including Senator Adam Schiff, who convened a meeting on the topic in March. However, Schiff and others noted that Republican lawmakers were waiting for a green light and positive signal from the White House.

Charles Rivkin, CEO of the Motion Picture Association (MPA), praised Trump’s action in a statement.

“For over a century, American studios, actors, and crews have produced the films and series that audiences worldwide want to see,” Rivkin said. “A federal incentive would be a historic and key step toward bringing more production into local communities across all 50 states, boosting our nation’s economy and making our country more competitive for producing, creating, and telling great stories. We appreciate President Trump’s support for this vital effort and look forward to continued collaboration with the White House and leaders from both parties in Congress to pass a meaningful and effective national incentive into law.”

Proponents of the measure point to a drastic drop in domestic production following the burst of the streaming bubble in 2022. Approximately 73,000 jobs nationwide have been lost, with roughly two-thirds of those losses concentrated in Los Angeles.

Last year, Adam Schiff introduced draft legislation offering a 15% credit on domestic labor costs. The MPA has also been collaborating with Jon Voight, Trump’s special envoy to Hollywood, seeking a 20% credit.

Trump noted in his Truth Social post that he recently met with Jon Voight regarding the matter.

“He is a wonderful man who loves our country and is extremely passionate about the film and television industry. He hates what has happened to it!” Trump wrote. “This industry is being completely decimated. Productions have moved to Canada and other countries, leaving very little work done in the United States. Hollywood has become a total and complete disaster! Contrary to its name, very little actual work gets done there. There is no incentive to stay, and this is hitting California exceptionally hard.”

Trump argued that a federal incentive would yield a positive return on investment.

“Jon and many others in the industry propose offering federal tax incentives to make our film and television production business big again—maybe even bigger than ever before!” he wrote. “The money spent on tax incentives will be returned tenfold back into the Treasury.”

Some lawmakers have also been working to revive Section 181, a narrower tax provision that allowed independent producers to accelerate the write-off of film investments. That provision expired last year.

In contrast, a federal tax incentive would grant studios and producers a percentage credit or rebate on production costs. This credit would likely stack on top of existing state-level incentives provided by California, New York, Georgia, New Jersey, and others. Roughly 80 countries currently utilize tax incentives for economic development, leading to thriving production hubs across Central and Eastern Europe, Australia, South Africa, and beyond.

Supporters argue that a federal incentive would also benefit states currently lacking substantial production footprints (such as Florida and Michigan), as those states do not offer local or state-level incentives.

Adam Schiff also commended the announcement in a post on X.

“I completely agree with the President,” Schiff said. “Congress should immediately pass a federal film tax incentive to bring back these good-paying jobs we’ve lost to other nations. Let’s work together—Republicans and Democrats—to make this happen and bring the magic of cinema back to America.”

Representative Laura Friedman, a Democrat from Burbank, has also been collaborating with House Republicans on tax incentives over the past year.

“I agree that our tax incentive legislation needs to pass—and quickly,” Friedman said. “For over a year, I’ve met with Jon Voight, congressional colleagues, unions, studios, and producers to build the case for a national film and television tax credit. There is no reason Canada, the UK, or Australia should take our jobs. We still have the finest crews and production talents on earth. It’s time to create the conditions for them to stay where they belong: in America.”

The Directors Guild of America (DGA) has also been pushing for a federal incentive, securing commitments from studios during June negotiations to lobby for the measure.

Russell Hollander, National Executive Director of the DGA, stated: “We look forward to working with the administration and Congress on a bipartisan bill that maximizes impact on boosting domestic film and television production, creating good jobs, and strengthening America’s homegrown entertainment industry.”