A new federal film tax credit could cover 20% to 30% of U.S. production labor. Rep. Laura Friedman explains reality TV, indie films, VFX and more.
A new bipartisan bill would create a 20% federal film and TV production tax credit, with bonuses pushing it to 30%. Rep. Laura Friedman says reality television may qualify, credits would be transferable, and Hollywood studios helped shape the legislation.
Hollywood has spent years watching productions leave Los Angeles and the United States for Canada, the UK, Ireland and other countries offering aggressive production incentives.
Congress is finally considering a federal answer.
The bipartisan Motion Picture, Television, and Entertainment Revitalization Act, introduced September 24, would create a 20% federal tax credit tied to U.S. production labor. Qualifying productions could add bonus credits and reach as high as 30%. The incentive could also be stacked with existing state programs.
But some of the most interesting details go beyond that headline number.
In a wide-ranging interview with The Town host Matt Belloni, Rep. Laura Friedman, one of the lawmakers behind the effort, explained how the proposal could affect reality television, independent films, major studios, above-the-line talent and even productions that shoot overseas but bring their post-production work back to America.
The Federal Film Tax Credit Starts at 20%
The basic structure is simple.
A qualifying film or television production would receive a 20% federal labor-based tax credit.
To qualify under the legislation as introduced, a production generally must spend at least $1 million and shoot at least 75% of its principal photography days in the United States.
Productions could then qualify for 5% bonus credits, with the total incentive capped at 30%.
Possible bonuses include production in rural Opportunity Zones or federally declared disaster areas, qualifying independent productions, certain multi-state productions and companies that measurably move production from foreign countries back to the United States.
For Los Angeles, that disaster provision could matter immediately. Friedman said areas covered by the federal disaster declaration following the Los Angeles fires could receive the added benefit for five years.
Yes, It Can Stack With State Film Incentives
This may be the number that gets producers’ attention.
The federal incentive is designed to supplement existing state incentives, not replace them.
That means a producer could potentially combine the new federal credit with incentives already available in places such as California, Georgia, New York or other production states.
During the interview, Belloni raised the possibility that certain combinations could effectively put qualifying labor incentives into the 50% range or higher.
Friedman said that is conceivable, depending on how the individual state’s program operates.
That is when this stops being another symbolic Hollywood bill.
For line producers deciding between Los Angeles, Atlanta, London, Toronto or Dublin, the math matters.
Actors, Writers and Directors Would Count
The federal credit would also cover above-the-line labor.
That includes expenses tied to actors, writers, directors and other qualifying workers who are often excluded or limited under state incentive programs.
California has faced criticism for not covering many of those costs through its existing program. Friedman noted that California’s credit is capped, which changes how the state allocates limited incentive dollars. The proposed federal credit is structured differently.
There is also a tax argument.
When a major production moves overseas, the U.S. is not only losing crew jobs and production spending. It can also lose payroll taxes connected to highly paid talent.
Friedman’s position is that the U.S. cannot seriously compete with foreign incentives while excluding a major portion of production payroll.
Reality Television May Be Eligible
This could become one of the more important details for Los Angeles television production.
Belloni initially suggested unscripted and reality programming had been left out of the bill.
Friedman corrected him.
The legislation specifically excludes categories including live sporting events, daytime dramas, social-media content, marketing material and several other forms of programming. Official bill summaries confirm those exclusions.
But reality television is not specifically excluded.
Friedman’s interpretation is that qualifying unscripted shows can therefore participate.
Her position was clear: she wants the program to be as expansive as possible if that helps keep production in the United States.
That matters because unscripted television has hardly been immune to runaway production.
Belloni pointed to Fox productions that have gone to Ireland, saying the economics can make it cheaper to fly contestants and talent overseas than shoot close to home in Los Angeles.
Post-Production and VFX Get Their Own Opportunity
A production would not necessarily need to shoot its entire project in America to generate a U.S. benefit.
The legislation separately covers qualifying post-production and visual-effects work when at least 75% of that work takes place domestically.
Friedman gave a practical example.
A movie could shoot overseas but return to Los Angeles for post-production. The qualifying U.S. post labor could still benefit from the federal incentive.
For editors, sound teams, VFX artists and post houses, that could create another way to compete for work that would otherwise stay overseas.
The Credits Would Be Transferable
Friedman also said the proposed credits would be transferable, an important detail for independent producers and companies that cannot immediately use their full tax benefit themselves.
A production that cannot use the credit could transfer it to another company that can.
For producers, that turns the incentive into something closer to predictable production financing rather than a tax benefit they may or may not ultimately use.
Belloni called that a significant expansion of the number of productions that could realistically take advantage of the program.
Friedman agreed, saying transferability makes the incentive more usable and gives productions more certainty about receiving financial value from it.
Hollywood Helped Write Something It Could Actually Use
The studios were not spectators.
Friedman said the Motion Picture Association and its chairman and CEO Charles Rivkin have been heavily involved. She has also spoken directly with studio leaders.
NBCUniversal Entertainment Chairman Donna Langley has publicly supported the proposal, and Paramount Chairman and CEO David Ellison issued his own endorsement after the bill was introduced.
The goal was not simply getting studios to support a tax credit.
It was making sure the final structure would actually affect decisions about where productions shoot.
Friedman said industry representatives provided input so lawmakers would not create an incentive that looked attractive in legislation but failed once producers put it into a real production budget.
Jon Voight Became an Important Voice for Independent Film
One of the stranger turns in the federal film incentive campaign has been the role of Jon Voight.
The actor, serving as one of President Donald Trump’s Hollywood ambassadors, became deeply involved in the push for a federal incentive.
Friedman told Belloni that Voight’s team focused in part on making sure the proposal worked for independent producers, whose financing needs differ sharply from those of major studios.
She described Voight as passionate about restoring production jobs and particularly interested in the crews, costumers, set designers and craftspeople who built their careers around American production.
The official legislation announcement also credits Voight for his involvement, alongside lawmakers, industry groups and labor organizations supporting the bill.
There Is No Government Content Test
Another important absence from the legislation: government oversight of the political or creative content of qualifying productions.
During the interview, Belloni raised concerns that a federally backed incentive could potentially come with restrictions based on the content being produced.
Friedman said there is no such provision.
Her argument was broader than current politics. A content standard that one administration likes could become a weapon in the hands of another administration later.
For an industry built around expression, she argued, tax policy should not become a system for regulating speech.
Trump Helped Move the Conversation From Tariffs to Tax Credits
President Donald Trump has played an unusual role in creating momentum for the proposal.
Trump had previously raised the idea of tariffs targeting movies produced outside the United States.
Industry advocates pushed instead for a federal production incentive.
Friedman said Trump’s eventual public backing of the tax-credit approach helped create an opening for the bipartisan legislation to move forward. The bill now has sponsors from both parties and both chambers of Congress.
In the Senate, the legislation is led by Tim Scott of South Carolina and Adam Schiff of California, with John Cornyn of Texas and Raphael Warnock of Georgia joining the effort.
In the House, Nathaniel Moran, Linda Sánchez, Brian Jack and Laura Friedman are among the leaders, with additional bipartisan cosponsors.
Studios, Guilds and Unions Are Lining Up Behind It
The coalition is unusually broad.
Supporters listed by the legislation’s sponsors include:
Motion Picture Association, Directors Guild of America, Producers Guild of America, SAG-AFTRA, IATSE, Teamsters, Independent Film and Television Alliance, Writers Guild of America East, Writers Guild of America West and the Television Academy, among others.
Friedman said bringing studios, independent producers and labor organizations onto the same page took years, not weeks.
That may be the most important part of the story.
Hollywood has complained about runaway production for a long time. This time, major studios, independent producers, unions, Republicans, Democrats and the White House are trying to solve the same problem with the same piece of legislation.
What Happens Next?
Introducing the bill is not the same thing as passing it.
The legislation now has to move through Congress, including the tax-writing committee process.
Friedman told Belloni supporters are exploring whether there is a path to action during the 2026 lame-duck session, but she does not want speed to come at the expense of votes.
The political sales pitch will also need to extend beyond Los Angeles.
The argument is that a film shoot does not only pay actors and directors. It hires electricians, carpenters, drivers, caterers, hotel workers, designers, equipment vendors and hundreds of other workers.
That is why supporters are trying to sell this as an American jobs bill, not a Hollywood bailout.
Whether Congress buys that argument will determine whether the biggest change to U.S. production incentives in decades actually becomes law.
QUICK FAQ
What is the new federal film tax credit?
The Motion Picture, Television, and Entertainment Revitalization Act proposes a 20% federal labor-based tax credit for qualifying U.S. film and television production. Bonuses could increase the total credit to 30%.
Can the federal film tax credit be combined with state incentives?
Yes. The legislation specifically allows the federal incentive to supplement existing state production programs.
Does the federal credit cover actors and directors?
Yes. The proposal includes qualifying above-the-line labor as well as below-the-line production workers.
Would reality TV qualify?
Reality television is not specifically listed among the excluded categories. Rep. Laura Friedman said during her interview with Matt Belloni that her interpretation is that qualifying unscripted productions can participate.
Does post-production qualify?
Yes. Qualifying post-production and visual-effects activity can receive the incentive when at least 75% of that work takes place in the United States.
Has the federal film tax credit passed?
No. The legislation was introduced on September 24, 2026 and still requires congressional approval.
