A federal film and television production incentive has been discussed for years. What has changed is how many people are now sitting on the same side of the table.
President Trump is calling for one. Democratic lawmakers are working toward one. IATSE and SAG-AFTRA want one. The Motion Picture Association supports one. And Jon Voight, Trump’s special ambassador to Hollywood, has been working with industry and labor leaders on a proposal of his own.
The proposals are not identical, and Congress has not enacted a federal film tax incentive. But the possibility of creating one has gained considerable momentum.
The question may no longer be whether Washington will seriously consider a federal production incentive. It may be what that incentive ultimately looks like, and whether Republicans and Democrats can agree on one.
Trump calls on Congress to act
The latest push came August 31, when Trump said following another meeting with Voight that he wants Republicans and Democrats in Congress to work together on legislation.
The proposed legislation even has a name: the Motion Picture, Television, and Entertainment Revitalization Act, which Trump said has received “great bipartisan response and support in Congress.”
“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America,” Trump wrote on Truth Social.
“Congress should approve, immediately, a Federal Production Incentive to create Entertainment Jobs in America.”
Trump did not specify a percentage, spending threshold, or structure for the incentive.
His support represents a notable change in direction. Trump previously threatened a 100 percent tariff on movies produced outside the United States to address runaway production. A federal production incentive would instead use tax policy to make filming in the United States more financially competitive with other countries.
Voight’s team proposes a 20 percent credit
Voight and his advisers have gone considerably further in defining what a federal incentive could look like.
Producer Steven Paul, Voight’s longtime representative and CEO of SP Media Group, and SP Media President Scott Karol have proposed a 20 percent federal tax credit on labor costs for film and television productions made in the United States.
Karol said the framework the team developed would be transferable and could be stacked on top of existing state production incentives.
That provision could be particularly significant for states such as Illinois that already have established production tax credit programs.
Schiff is working on bipartisan legislation
U.S. Sen. Adam Schiff has also been working to develop bipartisan legislation establishing a federal film production incentive.
Earlier this year, Schiff held a hearing in Burbank examining the loss of American film and television production to international competitors. His office says he is working to advance bipartisan legislation modeled in part on successful state incentive programs.
An earlier framework reportedly contemplated a 15 percent federal credit, with limitations on qualifying above-the-line compensation.
Schiff has also discussed whether an eventual federal program could provide additional incentives for productions returning to the United States from overseas.
The details remain under consideration, and Congress has not yet enacted legislation establishing the incentive.
Following Trump’s August 31 announcement, Schiff made clear that the two agree on the larger goal, saying Congress should move forward with a federal film tax incentive to bring production jobs back to the United States.
Friedman has been building support
U.S. Rep. Laura Friedman, whose California district includes Hollywood, has also been working on a national production incentive.
Friedman said she has spent more than a year meeting with Voight, congressional colleagues, unions, studios and producers to build support for a national film and television tax credit.
Following Trump’s announcement, Friedman called for Congress to move quickly.
“I agree that our tax incentive legislation needs to pass, and to pass quickly,” Friedman said.
IATSE says it is helping develop legislation
One of the strongest indications that the effort has moved beyond discussion came from IATSE on September 1.
The union said it is actively working with Voight and industry stakeholders to develop a federal incentive framework and is engaged with a bipartisan coalition of lawmakers to “draft, introduce, and pass federal incentive legislation.”
IATSE has advocated for a federal production incentive for years and supports a labor-based federal incentive that would supplement state programs.
The union argues that state programs alone compete with national incentive programs offered by countries that have aggressively pursued American productions.
SAG-AFTRA joins the call
SAG-AFTRA also issued a statement September 1 supporting a federal production incentive.
The union said too many productions and middle-class entertainment jobs have moved to jurisdictions offering more competitive incentives. It said it is prepared to work with the administration, Congress and other industry organizations on federal legislation.
“Production is the lifeblood of our industry and the communities that support it,” SAG-AFTRA President Sean Astin and National Executive Director and Chief Negotiator Duncan Crabtree-Ireland said in a joint statement.
The Motion Picture Association supports a national incentive
The Motion Picture Association is also supporting the effort.
“We applaud President Trump’s support for this vital action, and we look forward to continuing to work with the White House and bipartisan leaders in Congress to enact a meaningful and effective national incentive into law,” MPA Chairman and CEO Charles Rivkin said following Trump’s announcement.
The MPA has been participating in discussions surrounding a federal incentive as the industry looks for ways to make domestic production more competitive with international locations.
California Gov. Gavin Newsom has also advocated for a federal film tax credit, previously proposing a $7.5 billion national program and offering to work with the Trump administration on the issue.
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What could a federal incentive mean for Illinois?
For Illinois, the important question may be whether an eventual federal incentive could work alongside the state’s existing production tax credit.
Illinois significantly expanded its Film Production Tax Credit in 2025, strengthening a program that already has helped make the state one of the country’s major film and television production centers. The Illinois Film Office currently promotes a 35 percent credit on qualified Illinois production spending, along with additional incentives available to qualifying productions.
If Congress ultimately creates a federal incentive that can be combined with state programs, it could further strengthen Illinois’ ability to compete for productions that might otherwise leave the United States for countries offering national incentives.
Exactly how much Illinois productions could benefit would depend entirely on the legislation Congress ultimately adopts.
What happens next?
Significant questions remain.
Congress would have to determine the size and structure of a federal incentive, which production expenses would qualify, how labor would be treated, whether the credit could be transferred and how it would interact with existing state programs.
There is also the larger political question of whether enough Republicans and Democrats will support using federal tax policy to encourage domestic film and television production.
For now, no federal film tax incentive exists.
What has changed is the breadth of the coalition trying to create one.
With Trump publicly calling for congressional action, lawmakers pursuing bipartisan legislation, IATSE actively participating in its development, SAG-AFTRA urging Congress to act and the Motion Picture Association supporting a national program, the idea of a federal film and television production incentive appears to have gained something it has long lacked.
Momentum.
