WASHINGTON — President Trump urged Congress to approve federal tax incentives for film and television production in a Truth Social post on August 31, 2026. He cited job losses and international competition as primary drivers for the legislative request.

In the same post, Trump stated that he met with actor Jon Voight, whom he designated as "Hollywood Ambassador." American actor Voight was born in 1938. Donald Trump is a President of the United States (2017–2021; since 2025).

"Jon, and many others in the Industry, are suggesting we do Federal Tax Incentives in order to Make our Movie and Television Production Business GREAT AGAIN, Perhaps GREATER THAN EVER BEFORE!" Trump wrote. He added that the money spent on tax incentives would be repaid tenfold through increased Treasury revenue.

"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," he said. The initiative aims to address a decline in domestic production activity over recent years.

Industry data shows that in 2025, 45% of all U.S. films and scripted television shows were shot internationally. This figure represents an increase from 2022, when approximately 33% of all U.S. films and scripted television shows were shot internationally.

The shift in production location coincides with employment changes. Approximately 73,000 film and television jobs have been lost nationwide since 2022. About two-thirds of the 73,000 lost film and television jobs were in Los Angeles.

Charles Rivkin, chairman and CEO of the Motion Picture Association, issued a statement supporting federal tax incentives for film production. The Motion Picture Association has worked with Voight to advocate for a 20% federal tax credit.

"A federal incentive would be a landmark step toward bringing more production to local communities in all 50 states, strengthening our nation’s economy, and making our country a more competitive place to produce, create, and tell great stories, Rivkin said."

Senator Adam Schiff also voiced support for federal action. I am in strong agreement with the President. Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries," Schiff said. Schiff stated that state programs cannot substitute for federal tax incentives needed to bring production back to the United States."

Schiff circulated draft legislation last year proposing a 15% federal tax credit on labor costs incurred in the United States. His March 2026 statement reinforced the view that state-level measures are insufficient on their own.

Assembly Bill 186 extends the expiration date of non-refundable tax credits issued prior to 2025 by up to five years. A legislative analysis estimated that Assembly Bill 186 would cost the state up to $170 million in annual tax revenue. Governor Gavin Newsom signed a law in July 2026 capping corporate tax credits at $5 million or 70% of a company’s tax liability, whichever is higher.

The federal debate occurs against the backdrop of expiring tax provisions. Section 181 of the tax code, which allowed independent producers to accelerate depreciation of film investments, expired in 2025. Bryan Lourd, CEO of Creative Artists Agency, stated in a letter to lawmakers that without a fix to the tax credit cap, the program supporting thousands of jobs risks destabilization.

Why It Matters

The push for federal tax incentives comes as the U.S. film and television industry faces increasing international competition and domestic job losses. With nearly half of all U.S. productions shooting abroad in 2025, proponents argue that federal intervention is necessary to reverse the trend and restore competitiveness. The designation of Voight as "Hollywood Ambassador" signals a coordinated effort between the administration and industry leaders to lobby for legislative change.

State-level adjustments, such as California's Assembly Bill 186, attempt to mitigate some pressures but are viewed by lawmakers like Senator Schiff as inadequate without federal support. The expiration of Section 181 further complicates the financial landscape for independent producers. The outcome of congressional deliberations will determine whether the federal government adopts a role similar to state programs in subsidizing production costs to retain jobs and economic activity within the United States.

Timeline

In 2022, approximately 33% of all U.S. films and scripted television shows were shot internationally. Senator Adam Schiff circulated draft legislation last year proposing a 15% federal tax credit on labor costs incurred in the United States.

Senator Adam Schiff stated that state programs cannot substitute for federal tax incentives needed to bring production back to the United States in March 2026. On August 28, 2026, Assembly Bill 186 fully exempts independent film production tax credits from the $5 million annual cap. Also on August 28, 2026, California lawmakers agreed on Assembly Bill 186, which provides a partial carveout for the film and TV industry from a state cap on tax credits.

What's New

California lawmakers agreed on Assembly Bill 186, which provides a partial carveout for the film and TV industry from a state cap on tax credits, and the bill fully exempts independent film production tax credits from the $5 million annual cap. Assembly Bill 186 accelerates the payback period for studios electing cash refunds for tax credits from five years to two years and reduces the discount on cash refunds for tax credits from 10% to 5%.